Canada’s economy is dependent on exports, with about 85% of its exports going to its big brother down south, the U.S. Because of this, USD/CAD can be greatly affected by how U.S. consumers react to changes in oil prices.
If U.S. demand rises, manufacturers will need to order more oil to keep up with demand. This can lead to a rise in oil prices, which might lead to a fall in USD/CAD .
If U.S. demand falls, manufacturers may decide to chill out since they don’t need to make more goods. Demand in oil might fall, which could hurt demand for the CAD.
Put this in your mind when you want to trade USDCAD . Wish for all the best