|Member Sentiment Bearish|
Live and Historical CAD/JPY Rates
The associated chart shows the value of the Japanese yen (JPY) against the Canadian dollar (CAD) - that is how many Japanese yen can purchase one Canadian dollar. The JPY/CAD currency pair does not form a major pair though the yen is considered a major currency. The Canadian dollar is not a major currency and JPY/CAD are not considered to be one of the major commodity pairs, though both are strongly influenced by commodity markets.
The Canadian Dollar
Though Canada remains under the authority of the monarchy of Great Britain, the United States has more influence over the value of the Canadian market. This is due to the close commercial ties between the US and Canada. Over half of Canadian imports come from the US, and almost eighty-five percent of Canadian exports go to the US. Consequently, Canada is the tenth largest economy in the world, and CAD is the seventh most traded currency. Since becoming a floating currency in 1970, the controlling body of the CAD, the Bank of Canada, has remained fairly hands off, not interfering with interest rates since 1988.
The Japanese Yen
The yen is popular both as a trade and reserve currency: JPY is third in international trading popularity and many countries hold high quantities of JPY in reserve for foreign exchange making JPY the fifth most popular reserve currency. JPY has had a floating interest exchange rate since 1973. For JPY, the pip is located at the hundredths decimal place (.01) rather than the typical then thousandths place (.0001). Part of the strength of the yen is Japan's natural resources - gold, silver, and magnesium, to name a few. However, the yen's strength is also dependent on foreign sources of other minerals that make modern industry possible like copper, bauxite, and iron ore.
The Canadian dollar and the Yen share their closest connection through the US-one of the largest trading partners for both. As a result, the biggest factor for the pair is the status of the US economy and American trade. The price of heavy metals strongly influences both, while the price of energy commodities has a heavy influence on Canada. At certain times, the pair has been good for carry trades-whenever Canada has raised interest rates.
November 01, 2014 at 8:13 AM • Comment
*Key Fundamental Forex Events for the Week of October 27th through October 31st* The following table lists the key economic data and other events that came out during the week of October 27th through October 31st, with release times...Read More
October 29, 2014 at 3:20 AM • Comment
*USDCAD defensive range tone, but risk of a bear swing*Read More
October 28, 2014 at 2:53 AM • Comment
*Key Fundamental Forex Events and Forecasts for the Coming Week*Read More
October 28, 2014 at 2:48 AM • Comment
Key Fundamental Forex Events for the Week of October 20th through October 24th The following table lists the key economic data and other events that came out during the week of October 20th through October 24th, with release times...Read More
October 28, 2014 at 2:41 AM • Comment
*USDCAD negative tone and support threats*Read More