Welcome! Dear Traders,you are reading my forex trading experiences. Forex trading is a very profitable and very risky business opportunity. If you are a beginner, calm down,have a cup of coffee, and convince yourself that you need to study hard to win in forex trading. Obviously, the task is not easy as the statistics claim that only 5% traders win in forex trading. If you are determined, serious,and hard working, you can surely be included in the group of winners.

ECONOMY OF CANADA: AN OVERVIEW

The overview of Canadian economy written here is mainly aimed to integrate the economic information required for the fundamental analysis of Canadian dollar. Canada has an economy that is eleventh largest economy in the world in terms of nominal GDP, and is one of the world's wealthiest economies. Canada is a member of OECD and G7. Canadian economy is dominated by service industry as other developed countries.

Canadian service sector comprises 69.9% of GDP and employs 76% labour force of Canadian economy. Canadian agricultural sector is not that big which only comprises 1.7% of GDP, but still Canada is one of the large supplier of some agricultural products.Canadian manufacturing sector is big enough which comprises 28.4% of GDP and employs 13% of Canadians. Following are some of Canadian economic data collected from THE WORLD FACTBOOK published by CIA.

Canadian energy sector is very big, and this sector accounted for a big part of Canadian export.Canada is in the list of top ten producers and exporters of so many commodities e.g. crude oil, refined petroleum and natural gas. In following table you can find the Canadian energy sector data.

Oil is at the top of the list of products exported by Canada. As a result, oil price play a crucial role in the fundamental analysis of Canadian Dollar. A rise in the oil price can increase the value of the Canadian Dollar. Canada can also affect the oil price in the international market as it is one of the top ten oil producers and exporters in the world.

United States is the biggest international trade partner of Canada. United States is the biggest importer of Canadian Oil. Some other trade partners of Canada are China,Mexico, Japan, United Kingdom and Germany. International trade partners of Canada can significantly affect the value of Canadian Dollar.

A Forex trader may not require to be a "Master of Canadian Economy", but an overview of Canadian Economy is essential for the fundamental analysis of Canadian Dollar.When a Forex trader intended to study Canadian economy, he/she should focus on the following questions:
  • What are the strengths, weaknesses, opportunities and threats of Canadian economy?
  • Which domestic sectors largely affect the Canadian economy?
  • Can Canada affect the price of any commodity in the international market?
  • Is Canadian economy affected by the price of any commodity in the international market?
Dear Traders, if you want to learn more about Canadian economy visit wikipedia and The World Factbook of CIA. If you have any question, you can drop it below.

1 comment :

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