CAD/NOK is quite popular currency pair on Forex. CAD/NOK represents the cross rate against the U.S. dollar. Although the greenback cannot be observed within this pair, it still has a great impact on it. If the CAD/USD and USD/NOK price charts are combined, the CAD/NOK chart is received.
The U.S. dollar has a significant influence on both the Canadian dollar and the Norway kroner. Thus, it is necessary to consider the U.S. major economic indicators to predict the future CAD/NOK moves correctly. These indicators include: the discount rate, GDP, unemployment, new created workplaces indicator, and many others. However, the mentioned above currencies could respond differently to the changes in the U.S. economy. Thus, CAD/NOK may be a specific indicator of change at these currencies.
Canadian dollar is very dependent on world oil prices. Canada is one of the world largest exporters of oil. For this reason, with increasing oil price, the Canadian dollar is also increasing. On the other hand, if oil prices fall, the cost the Canadian dollar is falling, too. In such a way, CAD/NOK depends mainly on oil world prices.
Norway is one of the leading industrial-agrarian countries. The country takes the leading positions in the quality of life and personal income level. Norway is the third largest producer and exporter of oil and gas. The main source of income of this Scandinavian country is the export of energy resources. In addition, Norway is among top countries in electrometallurgy, electrical engineering, mechanical engineering, etc. In addition, the Norwegian industry is a leading manufacturer of offshore drilling platforms for oil and gas. Also, Norway’s fishing and aquaculture industry supplies seafood, which is in high demand worldwide, especially in the European countries.
This trading instrument is relatively illiquid compared with EUR/USD, USD/CHF, GBP/USD, and USD/JPY. Therefore, when you analyze CAD/NOK, you should primarily focus on those currency pairs that include the U.S. dollar.
It is necessary to remember that brokers usually set a higher spread for cross rates, so before trading them, read and understand the conditions offered by the broker carefully.