The price of the CAD/PLN currency pair represents the amount of Polish zloty per one Canadian dollar. The CAD/PLN is not very popular currency pair on the Forex market. It the cross currency pair as it does not include the U.S. dollar. However, the U.S. currency has a significant influence on it. This can be seen if you combine two price charts: the CAD/USD and USD/PLN. Thus, you can get an approximate CAD/PLN chart.
The U.S. dollar has a significant influence on both currencies. So, a CAD/PLN trader should take into account the major U.S. economic indicators in order to make a correct prediction of a future trend of this financial asset. The indicators which are important to keep track of: the Fed discount rate, GDP, unemployment rate, new jobs, etc. It is also worth noting that the currencies comprising the pair can respond at a different rate on changes in the U.S. economy. Therefore, the CAD/PLN may be considered a specific indicator reflecting changes of these currencies.
Canadian dollar is heavily dependent on world oil prices. Canada is one of the largest world exporters of crude oil. For this reason, higher global oil prices push Canadian dollar price higher too. Alternatively, falling oil prices bring the cost of the Canadian dollar down. Thus, there is a direct correlation between global oil prices and the CAD/PLN movement.
Poland plans to introduce the euro in the near future. At the same time, many of the domestic problems (the budget deficit, high public debt, etc.), as well as the global economic crisis prevented Poland from adopting the single European currency in the planned terms. The European Central Bank proposed to the country strict conditions to euro adoption. However, Poland will introduce the euro until 2014, having met all requirements.
Poland is a developed industrial country with high living standards. The main economic sectors are engineering, metallurgy, chemical and coal industry. Poland has robust automotive industry and shipbuilding yards on the Baltic Sea. The country is rich in mineral resources: coal, copper, lead, natural gas, etc. Due to the large number of hydrocarbons, Poland's economy is able to cover most of its electricity needs. International sovereign credit rating, the state of the leading sectors of the economy of Poland and the European Union are considered to be the factors that have a significant influence on the rate of the national currency.
This trading instrument is relatively illiquid compared with major currency pairs such as the EUR/USD, USD/CHF, GBP/USD, and USD/JPY. Therefore, when you forecast its further movement, you should primarily focus on the pairs with the Canadian dollar and Polish zloty quoted against the U.S. dollar.
If you trade cross rates, it is necessary to remember that brokers usually set a higher spread for crosses than for more popular currency pairs, so you should carefully read the conditions the broker offers for trading this type of currency pairs.