Even though both the Japanese Yen and the Canadian Dollar are currencies of commodity-influenced economies, the pair that they make is not considered to be a major commodity pair. As a matter of fact, this pair is not even a major at all, despite the fact that the JPY is indeed a major on its own. The CAD on the other hand is not.
Canada is to this day under the authority of the British monarchy, a fact which caused quite a row over what the national currency of the country should be, back in 1858, when eventually, the dollar was introduced, replacing the Canadian Pound. The reasons for the move were about practicality. Being a direct neighbor of the US, the bulk of Canada’s trade has always gone through its Southern neighbor.
The CAD went floating in 1970 and since 1988, the Bank of Canada, the authority behind the currency, has not tampered with the interest rates.
The Japanese Yen is the third most traded currency in the world, and it is also a popular reserve currency, with many countries holding massive quantities. The peculiarity of the JPY is that – while it is supported by a commodity-focused economy, rich in resources like Gold, Magnesium and Silver, it is also closely linked to commodity trading, as resources such as Copper, Bauxite and Iron Ore need to be imported into the country. Australia is the source of many such imports.
Through what global economic mechanisms are the CAD and the JPY linked? Given that the US is the biggest trading partner of both countries, the state of the US economy is one of the biggest factor influencing the evolution of this pair. The price of commodities is also a major part of the equation.
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