The CAD/PLN pair is not in high demand in the forex market. The pair is a cross rate against the US dollar. The Canadian dollar is the base currency, while the Polish zloty is the quoted one. The cross rate indicates how many units of PLN should be paid for one unit of CAD. The quote of the pair is based on the exchange rate of each of these currencies against the US dollar.

Features of CAD/PLN

The CAD/PLN pair hinges on world oil prices, as Canada is one of the largest oil exporters.

Therefore, the Canadian dollar strengthens when the value of the commodity rises and weakens when oil falls.

Poland is a developed European country with a relatively high level of economy. In addition to active financial support from the EU, the state's main sources of income are engineering, chemicals, coal mining, and shipbuilding, as the country has access to the Baltic Sea.

Although Poland is part of the European Union, its national currency is the Polish zloty. The exchange rate of Poland's national currency depends on such factors as the country's international credit rating, as well as the state of the major sectors of the Polish economy and the European Union.

How to trade CAD/PLN

When trading cross rates, speculators should be aware that brokers usually set higher spreads on them than on the more popular currency pairs. Therefore, you should carefully read the terms and conditions offered by the broker for this trading instrument.

The CAD/PLN pair is significantly influenced by the US dollar. This can be seen by combining USD/CAD and USD/PLN price charts. This way, we can get an estimated chart for the CAD/PLN pair. When forecasting the price movement of this financial instrument, such economic indicators as GDP, discount rate, unemployment rate, etc. must be taken into account.