Currency pairs, explained for Canadians

“The Loonie”

USD/CAD shows how many Canadian dollars one U.S. dollar buys. It is the most traded Canadian dollar pair by far and one of the most liquid currency pairs in the world, reflecting the enormous trade relationship between the two countries. When USD/CAD rises, the loonie is weakening; when it falls, the loonie is strengthening.

EUR/CAD prices the euro in Canadian dollars. It lets Canadians express a view on Europe versus Canada without the U.S. dollar in the middle.

GBP/CAD prices sterling in Canadian dollars. It is volatile compared with most CAD pairs, combining two currencies that react strongly to their own data.

CAD/JPY prices the Canadian dollar in yen. It combines a commodity-linked currency with a safe haven, so it often acts as a gauge of global risk appetite and oil sentiment.

AUD/CAD pairs two commodity currencies. It isolates differences between Australia's metals-and-China story and Canada's energy-and-U.S. story.

“Fiber”

EUR/USD is the world's most traded currency pair, pricing the euro in U.S. dollars. Its liquidity usually gives it the tightest spreads available at any broker, which is why many Canadian beginners start here even though neither currency is their own.

“Cable”

GBP/USD — nicknamed 'cable' after the transatlantic telegraph cable that once transmitted its price — pits sterling against the U.S. dollar. It tends to move more than EUR/USD on a typical day, which attracts short-term traders but increases risk.

“Gopher”

USD/JPY prices the U.S. dollar in Japanese yen. Because Japanese interest rates stayed near zero for decades, the pair has been central to the 'carry trade' — and to sudden reversals when that trade unwinds.

“Aussie”

AUD/USD prices the Australian dollar in U.S. dollars. Like the loonie, the Aussie is a commodity currency — but it is driven more by iron ore, coal and Chinese demand than by oil.

“Kiwi”

NZD/USD prices the New Zealand dollar in U.S. dollars. New Zealand's economy is heavily agricultural, so dairy prices and global growth matter.

“Swissie”

USD/CHF prices the U.S. dollar in Swiss francs. The franc is a traditional safe-haven currency. In January 2015 the Swiss National Bank abruptly removed its EUR/CHF floor, moving the franc by around 20% in minutes and bankrupting several retail brokers — a lasting lesson about leverage and gap risk.

“Chunnel”

EUR/GBP prices the euro in British pounds. Because the two economies are closely linked, it often moves in tighter ranges than the dollar pairs.

USD/CNH prices the U.S. dollar in offshore Chinese yuan (traded mainly in Hong Kong). The onshore yuan (CNY) is managed within a band around a daily fixing set by the People's Bank of China; CNH trades more freely but tracks it closely.

USD/HKD is pegged: since 1983 the Hong Kong Monetary Authority has kept the Hong Kong dollar within a narrow band (7.75–7.85 per U.S. dollar since 2005). It rarely makes sense to trade for price moves, but it's a useful case study in currency pegs.

USD/MXN prices the U.S. dollar in Mexican pesos. The peso is one of the most liquid emerging-market currencies and is sensitive to U.S. trade policy — which, under CUSMA, links it to Canada's economy too.