Canadian dollar is hoping to hold on to some of yesterday’s gains, and with thin trading and concerns about the geopolitical situation, that’s a possibility.
Canadian Dollar CAD
Central Bank: Bank of Canada
Interest Rate: 1.00%
Public Debt to GDP Ratio, 2013: 86.3%
Trade Balance, 2013: -$12.3 bln.
Inflation, 2013: 1%
Major commodity exporter
Factors of Weakness
Dependence on United States as a major counterparty
The Canadian dollar is the official currency of Canada and is the 7th most traded currency in the world. It is often nicknamed “loonie” for the image of the aquatic bird on $C1 coin. The loonie was introduced as a currency used in Canada and all of its provinces in 1871, while the fixed exchange rate was abandoned in 1970. It is used by some central banks as a reserve currency. The performance of the currency depends on raw materials. Prices for crude oil are the most influential factor on the value of Canada’s dollar as oil is the most important export of Canada.
Canadian Dollar News Archive
July 22nd, 2014 at 13:20
July 19th, 2014 at 2:18
The Canadian dollar ended the trading week on a positive note with help of supportive macroeconomic releases from Canada, which showed that the economy performs rather well and may weather monetary tightening from the nation’s central bank.
July 16th, 2014 at 13:13
Loonie has been sinking, in an overall trend kind of way, since Stephen Poloz took over at the Bank of Canada. With another policy statement on the way today, there are expectations that the Canadian dollar could go lower, particularly against the US dollar.
July 14th, 2014 at 14:25
Canadian dollar is making up some lost ground today, gaining against the US dollar. After disappointing data at the end of last week, the loonie headed lower, but today the Canadian currency is making something of a turnaround. Many Forex traders are looking forward to the interest rate announcement expected from the Bank of Canada on Wednesday.
July 11th, 2014 at 13:55
Canadian employment demonstrated strong growth in May and economists were expecting June to follow suit, showing continuous improvement of the labor market. Yet today’s report provided a nasty surprise to those Forex market participants who were hoping to buy the loonie as employment data was not good at all, driving the currency down sharply.
July 09th, 2014 at 13:24
Canadian dollar is higher today, and so are copper prices. While we often think of the loonie as a petrocurrency, the truth might be that it is really more closely related to copper — and that might be giving the Canadian dollar a boost today.
July 07th, 2014 at 21:41
The Canadian dollar sank today even though the Forex traders’ sentiment towards the currency improved somewhat and not all economic reports from Canada were bad. The currency extended its drop for a second trading session.
July 04th, 2014 at 2:18
Very good employment data from the United States fueled the strength of the US currency but it also led to massive gains of the Canadian dollar yesterday, which the loonie managed to maintain today.
June 30th, 2014 at 18:35
Canada’s gross domestic product grew in April less than was expected by analysts, triggering a drop of the Canadian dollar. The currency is currently recovering, trimming losses versus the Japanese yen and trading close to the opening level against its US peer.
June 24th, 2014 at 13:37
Speculators taking short positions on the loonie against the greenback are starting to capitulate a little bit. With inflation picking up in Canada, there is interest in what policymakers will do next, and some think that action will include some sort of interest rate hike, or some other mechanism to slow inflation.