30 Oct 2020 13:29
The CAD/CZK pair is rather popular among the traders of the Forex market. CAD/CZK is the cross currency pair against the U.S. dollar. Although the U.S. Dollar is not obviously present in this currency pair, it still has a significant influence on it. You can see it by combining two charts: CAD/USD and USD/CZK. By uniting them in the same price chart, you can get an approximate chart of the CAD/CZK pair.
The U.S. dollar affects profoundly both currencies. That’s why it is necessary to consider the major U.S. economic indicators for the correct forecast of a future movement of this financial instrument. There are some indicators such as the interest rate, GDP, unemployment, new workplaces indicators and many others. It is necessary to remember that the currencies listed above can react to the changes in economy of the U.S, so the CAD/CZK currency pair is a specific indicator of change at these currencies.
World oil prices can influence the Canadian dollar. As you know Canada is one of the world largest exporters of oil. Therefore, the oil price growth provokes the Canadian dollar price increase, and vice versa. So the currency pair CAD/CZK is directly dependent on world oil prices.
The Czech Republic is one of the most developed and industrialized countries of central Europe and, it is also the most prosperous and stable of this region. The Czech Republic has a high rate of individual income provided by a high level of economic development.
Machinery, iron and steel production, chemical industry, electronics, beer production, as well as agriculture are among the main economic sectors of the Czech Republic. The most developed industry sector is the automotive. The Czech Republic automobile production that mostly goes on export has one of the highest rates in the world. Moreover, the Czech Republic is one of the leading exporters of beer and shoes. The Czechs also export a variety of chemical products such as tires, synthetic fibers, etc. The main Czech Republic trading partners are Germany, Russia, Slovakia and Austria. Because of the presence of a wide range of possibilities to produce the electric power, the Czech Republic is one of the European leaders of the electricity production. The country produces nuclear, thermal, hydro, solar, and wind power.
If you trade cross rates, pay attention to the fact that the spread can be higher in comparison with the spread of more popular currency pairs. So before you start working with the cross rates, study carefully the broker’s conditions of trading with specified trade instrument.