Both denominated in Dollars, with extreme geographical proximity and with a very strong economic interconnection, the currency pair of the USA and Canada has a long tradition of interest. I remember the years when the asset traded close to par, around the financial crisis of 2008, equality that was undone, despite a return to that level from 2010 to 2013, but in the recent past the US currency has shown a relative strength superior to the Canadian one, which is justified by the differences in progress of both economies, but mainly in the movement of the price of crude oil.
Indeed, a brief analysis of the behaviour of the WTI in the last two decades and the USD/CAD is enough to understand the high dependence of the Canadian economy on the value of black gold, corresponding to periods of price rise in crude oil to increases in the value of CAD. And despite the fact that the USA is today a top country in the production and export of crude, its economy is much more diversified and therefore less dependent on the luck of the crude, something that in the long term with the predictable maintenance of raw material prices in higher values. low than the long-term average, due to lower demand and more supply, CAD has no prospect of returning to parity with the USD in the near future.
