Canada and the United States share the world's largest bilateral trade relationship. Hundreds of billions of dollars in goods and services cross the border each year, making the CAD/USD rate one of the most practically important exchange rates for North Americans.
The Canadian dollar briefly exceeded the value of the US dollar in 2007 and 2011, driven by surging oil prices and a strong Canadian economy. Outside of those periods, the loonie has generally traded below parity, typically in the 0.70 to 0.85 range against the greenback.
For Canadians, a stronger loonie means cheaper imports, more affordable US vacations, and better purchasing power for American goods. A weaker loonie makes Canadian exports more competitive but raises the cost of imported goods.