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Canadian Dollar Reaches 4-Year Low

POSTED BY:
Canada Forex Portal

DATE:
01/12/2014

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Canadian dollar has been slipping constantly in the CAD/USD pairing, and it is now at the lowest point that has been seen since 2009. As can be imagined, the sell off in the Canada Forex market has continued and even surged as investors try to get out of the pairing as soon as possible. They are concerned that it may continue in this direction, and those who work in the industry have even stated that its own momentum could carry it on this downward trend. Once people start selling it continually, it causes others to sell as well, cutting their losses, and the cycle plays into itself.

Of course, with forex trading Canada has to offer, this could also be a chance for long-term investors to buy the pairing while it is low, anticipating that it will level out soon and begin to swing upward once again. For those in binary options, the trend could be lucrative since predicting a fall is all that they have to do to win their trades, and so any sort of consistent trend is seen as a good thing. Forex is a bit trickier since it would be betting on the future, but there is nothing like buying low, which is certainly what you get with this pair.

For both binary options Canada has to offer and forex trading, the falling strength of the Canadian dollar is due to a number of factors, both domestic and international. For one thing, the number of people in the US applying for unemployment has not been as high as predicted, giving additional strength to the USD. In Canada, the new housing market has slid, with fewer building starts and no decline to match in the price of a home.

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