The Canadian dollar sank today after data that showed an unexpected decline of Canada’s economy. The currency recovered somewhat by the end of the trading session, erasing losses against the US dollar and the Japanese yen, also trimming the drop versus the euro.
Canadian Dollar CAD
Central Bank: Bank of Canada
Interest Rate: 0.75%
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
May 29th, 2015 at 21:57
May 28th, 2015 at 21:25
The Canadian dollar had been falling against its US counterpart and the euro during the most part of the Thursday’s trading session. Yet as of now, the currency has managed to erase losses versus the greenback and to pare the decline against the currency of the eurozone. On top of that, the loonie rallied versus the Japanese yen.
May 27th, 2015 at 10:53
After a bit of a rally, the Canadian dollar is struggling again. Even upbeat comments from the Bank of Canada can’t help the loonie overcome some of the realities of the current situation.
May 26th, 2015 at 11:31
Canadian dollar is losing ground against some of its major counterparts today, but there has been a slight shift in the long-term outlook for the loonie. Even though the Canadian dollar is lower today, there might be room for some strength in the future as the economy improves and if oil prices continue to recover.
May 20th, 2015 at 10:15
Canadian dollar is mostly lower again today, thanks to the slide in oil prices. The loonie is struggling as oil, once again, falls away from the $60 a barrel mark.
May 18th, 2015 at 11:10
There is speculation that the Canadian dollar is strong enough now that a rate hike from the Bank of Canada could come sooner than expected. The news is helping the loonie against its European counterparts.
May 14th, 2015 at 19:07
The Canadian dollar fell against other majors during the current trading session, largely due to the drop of crude oil prices. The currency fell even against the US dollar despite the earlier rise to the highest level since January.
May 13th, 2015 at 10:31
Oil is rallying, and that is helping the Canadian dollar in Forex trading today. Loonie is mostly higher against its major counterparts.
May 11th, 2015 at 10:50
Canadian dollar is lower today, thanks in large part to concerns over the employment situation and the economy. However, it’s also not helping that oil prices still aren’t recovering quite as much as some would like.
May 05th, 2015 at 10:45
Canadian dollar is heading a little bit higher today against some currencies, gaining ground as oil improves and as worries that the Bank of Canada will cut its rates further subside a little bit.