Foreign Exchange Canada - Welcome!

Canadians, are you looking to explore the world of foreign exchange? Confused about where to turn for good information? We'll walk you through it!

Basically, 'exchange rate' refers to the value of one currency against another. The rule of thumb is that the stronger the economy, the higher the value of a particular country's currency.

For example, the exchange rate in Canada for early 2008 is already averaging one US dollar to one Canadian dollar. In foreign exchange trading, these exchange rates in Canada will have a big impact on the currency trading market itself.

The principle behind Canadian exchange rates can better be explained by means of example. If you are a tourist in the United States, you would obviously need to exchange your Canadian dollars with US dollars. If the US-Canada exchange rate is US $0.90, your $100 Canadian equates to $90.

Although the most common means of measuring the value of the Canadian dollar is against the US dollar, it can also be measured against other currencies. If the value of the Canadian dollar is strong against US currency, it still may be weaker when compared to British pounds or European euros.

In the foreign exchange trading industry, the Canadian dollar has a flexible exchange system which is essentially dictated by the demand and supply of the dollars in the market. The performance of the Canadian dollar in the financial market depends on several factors, including the business activity in the economy, the movement of international investments and speculative activity in the forex trading industry.

The money supply, interest rates, inflation rates and the stability of the political situation in the country are other factors affecting the performance of the Canadian dollar against other types of currencies.

Our website's purpose is to provide the 'basics' on Canadian foreign exchange - enjoy the site!