Is the Canadian Dollar Going Up in Value, or Is the U.S. Dollar Going Down?

How To Tell if the U.S. Dollar is Going Down or the Canadian Dollar Is Going UpThe easiest and also the most revealing way to examine this question is by throwing other currencies into the mix. If we see how the Canadian and American Dollars have done against other major currencies such as the Japanese Yen and Euro, we can see if the Canadian-American exchange rate has changed because the Canadian Dollar has become more valuable of the American Dollar has become less valuable.
The idea behind it is simple: If we see that the Canadian Dollar hasn’t moved much against the Euro, but the American Dollar has dropped significantly, we’ll know that the changes in the Canadian-American exchange rate are mostly caused by a devalued U.S. Dollar. Conversely, if we find the U.S. Dollar has held steady against the Euro while the Canadian Dollar has risen in value, we’ll know that changes in the Canadian-American exchange rate were largely caused by an appreciating Canadian Dollar.