# data[].attributes.headline
 It's all about Foreign Exchange Rates by Isiah Gibson

# data[].attributes.subject
 It's all about Foreign Exchange Rates by Isiah Gibson

# data[].attributes.headline
Welcome to my Foreign Exchange Rate Padlet 

# data[].attributes.subject
Welcome to my Foreign Exchange Rate Padlet 

# data[].attributes.body
Within the posts on this padlet wall I will be exploring the  topic of Foreign Exchange Rates especially in the Canadian context..
By the end of your visit ,I hope that you would have an understanding of  the following:

Exchange rates, and  how they work, factors which influence  exchange rates and developments in the foreign exchange market.

I hope that you would understand how foreign  exchange rates affect you and how your choices can affect foreign exchange rates.

# data[].attributes.body
By now we may have accepted that foreign exchange fees are unavoidable .It  may not matter to persons who plan an occasional vacation outside of their country. This article discusses the topic of  the cost of foreign exchange transactions for persons who need to exchange currency frequently. It also offers valuable advise on how those costs can be minimized.

Did you know that apart from the exchange rate that there are other costs which you may pay? I will explain two of them:
1. Spread- This  is the profit which the bank of foreign exchange company adds to your cost
2.Fees- This can be a flat rate or percentage fee .

As a recent user of an international credit card and foreign exchange services I have found the information about the additional fees enlightening. I am now able to fully understand why the amount of money I receive is invariably less than my calculations based on the quoted daily rate.

For tips on how to minimize your costs, I invite you to follow the link

# data[].attributes.attachment_link.title
Top 5 Currency Exchange Tips for Canadian Snowbirds

# data[].attributes.attachment_link.description
Learn how to save money on foreign exchange fees and currency conversion costs when spending the winter outside Canada

# data[].attributes.body
It is so easy for us to conduct transactions today especially when we pay with cash. Did you think that there was a time when money bills did not exist? There is an interesting story behind the introduction of the Canadian currency which we use daily.

Being born in an era where money bills and coins are the accepted mode of trading, I never imagined that the Canadian dollar was not the original currency of this nation.  I have discovered that in the early 1700's gold coins were used for trading before the Canadian pound was introduced.

What is even more interesting is that different provinces used their own dollar until a unified currency was accepted in 1949. Today the currency consists of polymer bills and coins.

Can you imagine what it would be like today if each province  had retained its own currency in light of increased travel and trade?  This would certainly bring a complicated twist to the foreign exchange currency market.

# data[].attributes.body
The Bank of Canada is the nation's central bank whose stated role is "to promote the economic and financial welfare of Canada".
On March 01, 2017 the bank made a changein its policy of publishing daily exchange rates. The Bank decided to list only twenty six currencies which conducted frequent transactions against the Canadian dollar.  It went further to limit the publication of these rates to a single daily figure for each currency.
One of the things which I learned is that the Bank does not position itself as the provider of rates for transactional purposes.  Prior to this I was of the belief that the Bank would be the entity which regulated these rates. The article below gives an informative overview of how this policy evolved in light of developments such as the emergence of other trading platforms and open access to information via the internet

# data[].attributes.attachment_link.readable_text
Background information about the publication of exchange rates on the Bank of Canada's website.

What we publish

The Bank of Canada publishes foreign exchange (FX) rate data for 26 currencies.

A single rate reflecting the daily average exchange rate per currency pair is published each day by 16:30 ET.

These 26 currencies reflect the vast majority of FX transactions conducted against the Canadian dollar. Their selection reflects the combination of the top 20 currencies by trading volume (based on the Bank for International Settlements triennial FX turnover survey) and those of Canada's top 20 trading partners (based on Statistics Canada's International Merchandise Trade Database). The currencies are reviewed and adjusted, if required, every three years.

As of 1 May 2017, the Bank no longer publishes updated data for exchange rates published under previous methodologies, including daily noon and closing rates as well as high and low FX rates. Past data, however, remain archived on the Bank's website.

For more information, see the associated press release or the calculation methodology document.

Why the Bank made changes to its published exchange rates

The Bank made changes to its published exchange rates on 1 March 2017 to

reinforce that Bank of Canada exchange rates are provided as a public good-for statistical, analytical and informational purposes only-and not as benchmarks for transactional purposes;

reflect the fact that exchange rates are now readily available from numerous alternative sources;

take into account broader international work on the appropriate design of FX reference rates, after wide public consultation; and

be consistent with similar changes undertaken by other central banks.

What the Bank did to prepare users for these changes

In 2014, the Bank conducted a broad public survey to gain a fuller understanding of the impact of these changes.

The Bank delayed implementation of the changes for one year and communicated the changes well in advance to give users ample time to adjust, including seeking out alternative sources for rates.

The Bank consulted with several federal government organizations on the changes and notified the relevant provincial authorities and industry association groups.

The Bank provided a two-month window, from 1 March to 28 April 2017, during which both new and existing FX rate data were published concurrently.

As of 1 May 2017, the Bank continues to publish exchange rates for 26 currencies, as a public good, for statistical, analytical and informational purposes.

Why did the Bank reduce the number of currencies for which it provides exchange rates?

Findings from the Bank's 2014 survey, together with Bank data, suggest that many currencies calculated under the previous methodology were infrequently accessed.

The Bank decided to limit its published rates to those that represent the majority of FX activity against the Canadian dollar and are readily tradable.

This is consistent with practices at other major central banks.

Why the Bank publishes only one rate per day, and why the Bank changed its calculation methodology

The Bank changed its calculation methodology to reflect the average observable rate throughout the Canadian business day, rather than at a single point in time.

This reinforces the distinction between exchange rate fixings used as benchmarks for transactional purposes and Bank of Canada exchange rates that are provided as a public good, for statistical, analytical and informational purposes only.

The changes were undertaken in the context of broader international official sector work on the design of FX reference rates, including recommendations from the Financial Stability Board on FX benchmarks and the Principles for Financial Benchmarks published by the International Organization of Securities Commissions.

Where else to get exchange rates

Unlike when the Bank began publishing its exchange rates many decades ago, rates are now readily available from numerous alternative sources (multiple trading platforms, Internet sources and other data vendors).

The Bank has kept all past data

The Bank has kept all past exchange rate data exactly as they are and will not restate or recalculate historical rate data. Data calculated under the old methodology are archived on the Bank's website.

The Bank has maintained its exchange rate lookup tools

The Bank has kept its various exchange rate lookup tools but has made adjustments to them to reflect these changes while ensuring the integrity of all historical data. For more information, refer to the calculation methodology.

Some facts on the number of people who access the Bank's exchange rate data

The Bank's exchange rate pages receive more than one million unique visitors each month, representing 80 per cent of all www.bankofcanada.ca page views.

# data[].attributes.attachment_link.title
Foreign Exchange Rates Published by the Bank of Canada

# data[].attributes.attachment_link.description
Background information about the publication of exchange rates on the Bank of Canada's website. The Bank of Canada publishes foreign exchange (FX) rate data for 26 currencies. A single rate reflecting the daily average exchange rate per currency pair is published each day by 16:30 ET.

# data[].attributes.headline
Foreign exchange rates and factors which influence them 

# data[].attributes.subject
Foreign exchange rates and factors which influence them 

# data[].attributes.body
An exchange rate is the price of a nation's currency in term of another currency. An exchange rate has two components: the domestic currency and the foreign currency. which can be quoted directly or indirectly.

In other words, the foreign exchange rate determines the value at which one country's currency converts into another country's currency. It is important to note that it is also one of the key indicators of a country's relative economic strength.

This article looks at the relationship between the Canadian and U.S currencies over the past ten years. It goes further by looking at specific factors which influence each of the two counties.
How do we respond to changes in the exchange rate? Example: If  the Canadian dollar is stronger , Canadians may tend to travel or shop outside of the country because of the increase in spending power.

Some of the factors include:
The rate of inflation
Interest rates
Balance of payments
Government debt
Political stability and performance

From reading this article I have come to understand what a strong influence the cross currency rate has on the economic and business climate in both countries. It made me realise how important it is for us to pay attention to what is happening in the business, political and economic affairs of countries with whom we have relations.

# data[].attributes.attachment_link.readable_text
What is the US to CAD Currency Cross?

The USD/CAD currency pair represents the quoted rate for exchanging US to CAD, or, how many Canadian dollars one receives for every US dollar. For example, a USD/CAD rate of 1.25 means 1 US dollar is equivalent to 1.25 Canadian dollars - or conversely stated, that it takes 1.25 Canadian dollars to equal 1 US dollar. This forex guide Forex Trading - How to Trade the Forex Market will review factors that impact both currencies and their exchange rates.

Factors that affect the US to CAD exchange rate

The USD/CAD exchange rate is affected by and political forces on both sides of the border. Below we will analyze factors that commonly impact each country.
Factors impacting the USD:

Unemployment rate

Money supply and the printing of money by the Fed

International trade agreements, tariffs, and duties

Budget deficit and total national debt

Political events

Entitlements (Social Security and Medicare)

Consumer savings and household income rates

And many more factors (read about 50 different factors)

Factors impacting the CAD:

Commodity prices (oil, potash, zinc, and others)

Bank of Canada (BoC) interest rates

Employment rate and job creation

Budget deficit and national debt levels

Politics and international policies

The quality of Canadian and US relations

Read more: history of the Canadian dollar

History of the US to CAD Exchange Rate

Below is a chart of the US to CAD exchange rate over the last 10 years, from 2008 to 2018. As you will notice, the FX rate has been anywhere between 0.94 and 1.46 over that time period.

The two currencies have been relatively close to each other in value over the past decade. Interestingly during this time period, they have flipped back and forth between which has been the stronger currency. But it was only in the period of 2011-2012 that the Canadian dollar was actually worth more than the US dollar (when the USD/CAD exchange rate briefly dipped below 1.00). From late 2008 - when the full impact of the 2008 financial crisis was hitting the US - to mid 2011, the Canadian dollar was strengthening against the US dollar. Since 2011-2012, however, the USD has shown renewed strength and increased in value relative to the CAD, as shown by the strong uptrend in USD/CAD that drove the exchange rate substantially higher into mid 2015. During that same time period, the US dollar was generally in an uptrend against most of the other major currencies as well.

Impacts of US to CAD on Business and Lifestyle

Since Canada and the US are neighboring countries, the exchange rate has a big impact on business, tourism, and lifestyles.

When the US dollar is stronger, there is some migration of manufacturing and labor outsourcing to Canada in an effort to lower costs. Additionally, there is more importation of goods from Canada into the US, and Americans will be more likely to go on vacation or buy properly in Canada, as it is comparatively cheaper.

The opposite is true when the Canadian dollar is stronger. Firms will tend to import more from the US into Canada and Canadians will be more likely to vacation and buy real estate In America.

Additional Resources

Thank you for reading this guide on the US to CAD exchange rate. CFI is the global provider of the FMVA™ Certification Financial Modeling & Valuation Analyst certification , a leading accreditation for financial analysts. To continue learning and advancing your career in corporate finance, these additional resources will be helpful:

# data[].attributes.attachment_link.title
US to CAD Currency - Factors Impacting FX Rates in Canada & US

# data[].attributes.attachment_link.description
The USD/CAD currency pair represents the quoted rate for exchanging US to CAD, or, how many Canadian dollars one receives per US dollar. For example, a USD/CAD rate of 1.25 means 1 US dollar is equivalent to 1.25 Canadian dollars.

# data[].attributes.headline
Recent developments in the foreign exchange market

# data[].attributes.subject
Recent developments in the foreign exchange market

# data[].attributes.body
On September 30, 2018 The U.S.A, Canada and Mexico came to a new agreement to update the NAFTA agreement.Although the new deal does not go into effect immediately, there has been a response already in the foreign exchange market. According to this video the Canadian dollar has soared to a U.S . 78 cents rate.
The producer explains how one of the provisions can bring benefits to Canadian cross border shopping. This provision will increase the duty free allowance from fifty U.S. dollars to one hundred and fifty U.S dollars.
Based on this we can expect that cross border travel and shopping will increase.  While this is good news for us consumers, it can prove detrimental to Canadian retailers.
This has impressed upon me that economics is more than just a theoretical science. It is involved in our everyday individual decisions such as choosing to purchase cheaper foreign goods.

# data[].attributes.attachment_link.title
Impact of the new trade deal on the Canadian dollar | Watch News Videos Online

# data[].attributes.attachment_link.description
Watch Impact of the new trade deal on the Canadian dollar Video Online, on GlobalNews.ca

# data[].attributes.body
In recognising that the forex market could be unpredictable, the players in the investment industry created the Canadian Investment Protection Fund in 1969.
This organisation plays a critical role in Canada's financial system by providing protection for investors who have accounts with its registered members. In the event that the investment broker becomes bankrupt, the investor has recourse to recover his/her property.
The lesson for me or anyone thinking of entering this market is to check that the dealer is a registered member of CIPF.
I invite you to look at the attached brochure for further guidance

# data[].attributes.body
This video gives a practical example of one of the areas that foreign exchange rates has an impact . Canada has been known to have a comparatively open immigration policy. A significant amount of persons living in Canada are foreign-born.
Have we ever stopped to think about the cost which immigrants are willing to pay for the benefits of what they perceive as a better life? Based on the cross currency rate between Canada and their home country, migration can represent a significant investment for the individual. We all know or have met someone who migrated to Canada .However, we may have never given a thought to The role that foreign exchange played n the process..

This is an area which I took an interest in as someone who would consider living and working in Canada to acquire work experience in my field of study.

# data[].attributes.attachment_link.title
🇨🇦 Rising Foreign Exchange Rate | Impact on Canada PR

# data[].attributes.body
A simple google search can generate up to two million entities offering 'Forex Training Courses. In my research I have discoverd that here are two main categories of training.
In choosing a training course one should do some research and look for things such as the reputation of the entity, certification and time and costs involved.
One valuable lesson I have learned from surveying this topic is to be wary of claims from trainers who guarantee instant and tremendous profits.

# data[].attributes.body
Forex ,FX  or currency trading is a global decentralized market  which involves buying or selling currency for profit off changes in its value. At the moment it is largest and most liquid market in the world.
For someone who does not have any understanding of this area, the video gives a basic definition and an explanation of some of the key terms we may have been hearing. This video is presented by InstaForex, a company which acts as a broker or financial advisor to the investor.
I have learned the meaning of key terms such as :currency pair, platform and trading accounts.
The one thing that has impacted me -understanding that careful choice of a broker is more valuable than the amount of money you have to invest.
In addition to this video, I invite you to take a look at my post on "Protection in the Forex Market"