Trading EURCAD
The EURCAD is one of the most-traded currency pairs by volume. However, complexity and volatility can lead to unsettled price action. This guide will analyse the trading view of the EURCAD cross-currency pair, including historical data, long-term forex forecasts, correlation calculators, investing strategies, live charts, and more.
EURCAD Trading Brokers
- Forex.com - Forex.com is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.
- Interactive Brokers - Trade 85 major, minor and exotic forex pairs via CFDs on IB's FXTrader platform with tight spreads and low commissions, or trade forex on the spot market. They offer more FX assets than almost any competitor.
- NinjaTrader - NinjaTrader supports the trading of popular currencies including the EUR/USD. The trading software also offers unique features tailored to forex trading, including specific order and market windows.
- OANDA US - OANDA offers 68 forex pairs, more than many alternatives. The broker's in-house platform also offers impressive execution speeds and a suite of advanced charting and analysis tools.
- Webull - Webull offers a modest collection of 17 currencies, including majors like EUR/USD. Forex can be traded on the feature-rich investing app with real-time quotes and low spreads.
Top 3 Broker Comparison
| Forex.com | Interactive Brokers | NinjaTrader | |
|---|---|---|---|
| Forex Assets | 80+ | 70+ | 50+ |
| EUR/USD Spread | 1.0 | Commission (.20 pts x trade value) | 1.3 |
| Forex App Rating | |||
| Minimum Deposit | $100 | $0 | $50 |
| Regulator | NFA, CFTC | SEC, FCA, IIROC, SFC | NFA, CFTC |
| Visit | Visit | Visit | Visit |
#1 - Forex.com
Forex.com is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.
"Forex.com is an excellent broker for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score."
- DayTrading Review Team
- GBPUSD Spread: 1.0
- EURUSD Spread: 1.0
- EURGBP Spread: 1.0
- Total Assets: 80+
- Leverage: 1:50
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
About Forex.com
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
Pros
- Excellent trading tools including Trading Central, SMART Signals and MetaTrader 4
- Respected and trusted broker overseen by tier-one regulators including the US SEC
- VPS hosting for automated strategies
Cons
- Investment offering varies between countries
- No copy trading platform
- $15 monthly inactivity fee
#2 - Interactive Brokers
Trade 85 major, minor and exotic forex pairs via CFDs on IB's FXTrader platform with tight spreads and low commissions, or trade forex on the spot market. They offer more FX assets than almost any competitor.
"Serious traders seeking a regulated broker with unparalleled access to stock markets should look at IB. Their range of stocks can't be beaten."
- DayTrading Review Team
- GBPUSD Spread: Commission (.20 pts x trade value)
- EURUSD Spread: Commission (.20 pts x trade value)
- EURGBP Spread: Commission (.20 pts x trade value)
- Total Assets: 70+
- Leverage: 1:50
- Platforms: AlgoTrader, OmniTrader, eSignal, TradingCentral
About Interactive Brokers
Interactive Brokers is a leading global brokerage that provides access to a comprehensive offering of stocks as well as forex, futures, metals, bonds and cryptos. The firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, IIROC, and SFC. Traders use the proprietary Trader Workstation and can access powerful tools and data feeds as well as comprehensive educational resources.
Pros
- Commission reimbursement with Toggle AI
- Direct market access, including to the FTSE 100 index, the CAC 40 and Germany’s DAX 40
- Regulated by some of the world's most reputable bodies including in US
Cons
- Platform and web interface are complex and difficult for beginners to pick up
- The TWS platform falls short in terms of technical charting
- Mediocre customer support
#3 - NinjaTrader
NinjaTrader supports the trading of popular currencies including the EUR/USD. The trading software also offers unique features tailored to forex trading, including specific order and market windows.
"We recommend NinjaTrader for high-volume futures traders looking for low fees and premium analysis tools."
- DayTrading Review Team
- GBPUSD Spread: 1.6
- EURUSD Spread: 1.3
- EURGBP Spread: 1.6
- Total Assets: 50+
- Leverage: 1:50
- Platforms: eSignal
About NinjaTrader
NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.
Pros
- Easy account opening that takes a few minutes
- Free platform access and trade simulation capabilities
- Excellent trading software for active users with bespoke widgets and indicators
Cons
- Non forex and futures trading requires signing up with partner brokers
- Premium platform tools come with an extra charge
- Withdrawal fee on some funding methods
#4 - OANDA US
OANDA offers 68 forex pairs, more than many alternatives. The broker's in-house platform also offers impressive execution speeds and a suite of advanced charting and analysis tools.
"OANDA is a top-rate broker for US traders seeking a user-friendly platform with premium market research and a straightforward joining process. OANDA is a particularly good pick if you want a heavily regulated broker with a secure trading environment."
- DayTrading Review Team
- GBPUSD Spread: 3.4
- EURUSD Spread: 1.6
- EURGBP Spread: 1.7
- Total Assets: 65+
- Leverage: 1:50
- Platforms: MT4, TradingView, AutoChartist
About OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available, alongside flexible contract sizes and automated trade executions.
Pros
- Wide selection of instruments including 68 forex pairs
- Reliable, trustworthy and secure brand with authorization from tier-one regulators
- Low minimum deposit for beginners
Cons
- Customer support not available on the weekend
#5 - Webull
Webull offers a modest collection of 17 currencies, including majors like EUR/USD. Forex can be traded on the feature-rich investing app with real-time quotes and low spreads.
"Webull is best for traders looking to buy and sell stocks on a user-friendly platform with zero commissions. The intuitive app also makes this broker great for mobile investors."
- DayTrading Review Team
- GBPUSD Spread: 0.4
- EURUSD Spread: 0.2
- EURGBP Spread: 0.4
- Total Assets: 15+
- Leverage: 1:4
- Platforms: Desktop App, Web Terminal
About Webull
Webull is a US-regulated trading app that offers stocks, options, forex, cryptos, ETFs, fractional shares and more. The firm is authorized by the SEC and FINRA with a strong trust rating. Low fees, no minimum investment and generous welcome bonuses have made the discount broker popular with online investors.
Pros
- Brokerage account plus IRA
- Smart Advisor for auto investing
- Easy-to-use investment platform and mobile app
Cons
- High deposit and withdrawal wire fees for non-US residents
- Sometimes sudden changes in trading conditions
- No MetaTrader 4 access
EURCAD Explained
The Euro (EUR) is the official currency of respective European nations, and the Canadian Dollar (CAD) is that of Canada. The exchange rate of both currencies is impacted by respective monetary policies from the European Central Bank (ECB) and the Bank of Canada. Today, the Euro is the second most traded currency in the world, while the Canadian Dollar is the sixth.
Importantly, the EURCAD exchange rate denotes the buy or sell price of the Euro to the Canadian Dollar. For example, 1 EUR to 2 CAD means to buy 1 Euro, you will pay 2 Canadian Dollars.
Exchange rate history, future prognosis, real-time news, and decisions from central banks can all help traders make predictions about the value of the currency today, tomorrow, or several months from now.
Live Chart
History
The EURCAD is a fairly new forex pairing following the introduction of the Euro. The Euro was established as a digital currency in 1999 before gaining power as a physical asset across European Union zones. Significant economic events, including Brexit, and Eurozone performance have impacted the value of the Euro over the years.
The Canadian Dollar, originally the Canadian Pound, was developed in the 1850s and renamed to strengthen trade affiliation with the US. The value of the Canadian Dollar was set at 1.1 CAD to 1 USD until 1970 when it then became a floating currency. The Canadian Dollar is a commodity-sensitive currency with exchange rate fluctuations responding to price movements of their most lucrative export asset, crude oil.
In recent history, Covid-19 had a big impact on both currencies. As such, each region’s policies, quantitative easing, measures to prevent the virus, and vaccine implementation have come under scrutiny by investors. The region with the lowest cases and the best policies outperformed the other.
Inflation rates and the Russia-Ukraine war also destabilized the EUR, which has since been losing ground against the CAD. This is a very good example of how global political events can impact forex trading markets, even though Ukraine doesn’t directly use the Euro.
Note, the all-time high for the EUR/CAD was 1.71 in December 2008 while the all-time low was 1.21 in August 2012.
Influences On Price
Many influences can cause movements in the value of the EURCAD, lending it to various trading strategies. Fundamental and technical analysis play a key role in most strategies, helping to inform investment decisions.
Technical Analysis
Today, technical analysis for trading forex pairs such as the EURCAD typically involves reviewing price trends and patterns on graphs. Historical 5 /10/ 20 years price data and monthly average charts are available at many top brokers, including IG. In fact, most of the best brokers offer software free downloads with a suite of charts and indicators to aid with technical analysis. Competitive forward rates are also available at top providers.
Fundamental Analysis
Fundamental analysis involves looking at economic, social, and political influences on the EURCAD. For example, investors should look at Canadian GDP growth data, plus unemployment and interest rates. Lots of leading FX brokers offer economic calendars with upcoming events, along with the latest news bulletins.
Features Of The EURCAD
The EUR/CAD is known as a cross-currency forex pair. Cross pairs are those that do not include the US Dollar and have particular features to take into account:
- Uncorrelated pairs are highly volatile
- Reduced exposure to exchange rate fluctuations from US Dollar sensitive events
- Lower volume traded vs. major currency pairs can lead to increased price swings
- Weaker liquidity may lead to increased spreads with additional pips to enter trades
Despite this, it is important to note that the value of the US Dollar can still influence price movements in the EURCAD. A strength or weakness in the USD against other currency pairs can indirectly impact cross pairs.
Use a correlation calculator to understand the variables impacting the EURCAD versus the EURUSD and USDCAD. A positive correlation indicates a forex pair that reacts in line with movements in the EURCAD. A negative correlation suggests the currency pair will move in the opposite direction.
How To Trade The EURCAD
Currency pairs such as the EURCAD are bought and sold via a network of banks and brokers in a decentralized OTC market. Traders can use CFDs, forwards and futures, options, and more to speculate on the value of the pair.
Regardless of instrument, employment rates, political events, and demand for key commodities such as oil can all impact the EURCAD.
Trading Strategies
Many forex trading styles can be used to speculate on the price of the EURCAD:
- Swing – Holding positions for one or more days. Identify the market range and buy or sell according to support and resistance signals, pivot points, or other indicators.
- Scalping – Opening and closing positions, usually holding for just a few minutes to take advantage of small gaps between the bid and ask price. Intraday candlestick charts are a useful tool for scalpers.
- Carrying – Using a low-interest-rate currency to invest in a high-interest rate currency. EURCAD swap strategies usually involve going short. Sell the Euro to benefit from an interest rate differential between the EURCAD and your position size.
Pros Of Trading EURCAD
There are several reasons why this forex pair is popular:
- High volatility – Strong market trends means greater potential to generate revenue.
- Interest rates – Discrepancies between interest rates create opportunities for carry trade strategies.
- Information – Plenty of financial information is available on the EURCAD exchange rate online. Data includes weekly forecasts, live exchange rate charts, and currency conversion graphs. These can all help with trader outlooks and market sentiment.
Cons Of Trading EURCAD
There are some drawbacks to consider before investing money in the EURCAD:
- High risk – The volatility of the pair can create a complex environment for traders with limited experience or knowledge.
- Euro cross – The Euro links make the FX pair susceptible to intense price fluctuations from political and economic events in Europe.
Best Time To Trade
The majority of price movement occurs during the crossover between the London and New York financial market sessions, 1 pm to 4 pm GMT. Keep an eye on FX spot rate real-time charts and live graphs during this time. Most popular day trading strategies can be used during this period of increased liquidity.
Final Word On Trading EURCAD
The EURCAD offers traders both liquidity and volatility. There is a wealth of market data and trading tools available at leading forex brokers to help traders take positions on the FX pair. But before you start investing money, it is important to keep abreast of factors that can influence the exchange rate, including central bank decisions, news events, and indirect impacts from US Dollar sensitivities.
FAQs
Which Monetary Authority Regulates The Canadian Dollar?
The Central Bank of Canada is the nation’s primary bank. While intervention is rare, it is worth keeping an eye on announcements from the central banking authority as they may influence the value of the EURCAD.
How Do I Read The EURCAD Forex Pair?
In this forex pair, the Euro is the base currency and the Canadian Dollar is the quote currency. The base currency signifies how much of the quote currency is needed to buy one unit of the base currency. For example, 30 EUR versus 45 CAD means to buy 30 Euro you will pay 45 Canadian Dollars.
Is The EUR Stronger Than The CAD?
The exchange rate of the EUR v CAD fluctuates daily, with forecasts from 2023 highlighting COVID-19 economic recovery, interest rates, price of oil, Russia-Ukraine war, and inflation rates as key factors impacting the strength of the two currencies.
When Is The Best Time To Trade EURCAD?
The best time to trade the EURCAD currency pair is generally during the crossover between London and New York market sessions, 1 pm to 4 pm GMT. This is where the majority of price movement will occur creating trading opportunities.
How Much Is 1 EUR To CAD?
Exchange rates for the EUR to CAD fluctuate daily, noted in historical charts by date. Live currency exchange rate charts offered by leading forex brokers show how many Canadian Dollars are needed to buy 1 Euro.