The USD/CAD currency pair is also known as the Loonie and is an interesting pair to trade as it is closely correlated with crude oil. This is because oil is one of the key exports out of Canada, making the value of the Canadian dollar closely connected to crude oil prices.When the price of crude oil rises, the exchange rate of USD/CAD falls as the Canadian dollar - which is known as a commodity currency, strengthens and turns the Loonie bearish, and vice versa. In addition to crude oil, factors that impact the Loonie’s exchange rate include release of important economic data, monetary policy decisions of the Federal Reserve and the Bank of Canada (BOC), political developments, and trade-related developments.Key economic releases that affect the movement of the US dollar and the Canadian dollar include GDP, unemployment rate, inflation, consumer confidence, business sentiment, manufacturing and services sector activity, retail sales and trade balance. In addition, the exchange rate of USD/CAD is also influenced by changes in the monetary policy and interest rates by the Fed and the BOC.Trade is an especially important factor that moves this currency pair as the economy of Canada is heavily dependent on its exports. The US is the main market for Canadian exports, so any trade or tariff related developments by the US also have a significant impact on the Canadian economy and the CAD.