Why you should Care Eurcad in Forex Trading in 2019?

The EURCAD currency pair, also commonly known as ‘loonie 2’ is the combination of the Euro and the Canadian Dollar. A well-known fact today is that the Euro is incredibly lucrative when paired right. Being one of the highest-valued currencies in the world, EUR can prove to be a great quote and base currency. The same can’t be said about EURCAD however; though Euro carries a significant value, the pair as a whole is not too liquid.

Forex trading Currency Pairs 2019
Though both the European and Canadian economies are stable, the EUR sees an unmatched upper hand. This results in them indulging in an extensive array of economic functions while the latter sees a better export ratio. While the combinations of USDCAD, CADJPY etc see more success in Forex trading markets, the EURCAD is considered to be a lot more risky and unstable for trades. Fact is, however, the difference in interest rates between the Euro and Canadian Dollar project the latter as the better trading expert advisor pick.

Europe, since it has multiple countries, has led to a scenario where the different countries have a different monetary policy. This only serves as an element to add to the chaos, making the euro area complicated than the Canadian Dollar.
What influences the currency value here is the bank. The European Central Bank is responsible for monitoring the monetary policy in the eurozone. They keep the inflation rate under 2%. Similarly, the bank of Canada monitors the policies for the Canadian Dollar. Much like the ECB, the BOC tries to keep the Canadian Dollar’s inflation value at 2%.
Since Canada has earlier survived a recession in a great fashion, professionals are starting to consider it as a stable investment market. In addition to this, Canada is known for its tremendous commodity exports and the value it adds to the currency. The Euro value, on the other hand, depends largely on the conduct of the comprising nations. Hence, EURCAD with all the volatility surrounding it is one pair to watch out for!

Starting off with Forex trading in Malaysia, these economical concepts might sound very confusing. As you keep trading, however, you will pick up all that’s needed and learn to fine-tune your trading approach!

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