Canadian Dollar CAD

 

Detailed information and fundamental factors

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%

Sovereign Credit Ratings:

Fitch
AAA
Stable
Moody's
Aaa
Stable
S&P
AAA
Stable

Supporting Factors

Major commodity exporter

medium

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

Canadian Dollar Gains Ground Against Major Currencies

Canadian dollar continues to rally today, heading higher against its major counterparts. Even with slightly lower oil prices, the loonie is heading higher, continuing its rally from last week.

Fundamental Factors Negative for Canadian Dollar

The Canadian dollar dropped today as fundamentals were unfavorable to the currency. Among the negative factors were domestic macroeconomic data, the general market sentiment and the drop of crude oil.

Canadian Dollar Unable to Maintain Gains, Moves Below Opening

The Canadian dollar rallied earlier during the current trading session, hitting the two-year high versus the euro, with the help of favorable economic data from Canada. Yet the loonie was unable to keep gains and is now trading far below the opening level against other majors.

Poor US Data & Rising Crude Oil Prices Fuel Gains of CAD

The Canadian dollar rose today, climbing to the highest level in almost three months against its US counterpart and the Japanese yen, as poor economic data from the United States and the rally of crude oil prices played in favor of commodity currencies.

Canadian Dollar Gains as BoC Puts Interest Rates on Hold

The Canadian dollar gained today, reaching the highest level since May 2013 against the euro, after the Bank of Canada refrained from changing its monetary policy. The rally of crude oil prices added fuel to the loonie’s upward movement.

Economic Reports from Canada Help Loonie

The Canadian dollar managed to erase losses against its US counterpart by the end of the Friday’s trading session with the help of positive domestic data. The currency even gained against the euro, reaching the highest rate since May 2013. The loonie also reduced losses versus the Japanese yen but was unable to erase them completely.

Oil Helps Canadian Dollar in Forex Trading

Canadian dollar is a little bit higher today, thanks in part to oil prices. Crude oil is on the rise again, and yesterday’s announcement of the merger between Shell and BG Group is having its effect as well.

Canadian Dollar Continues to Log Gains

Canadian dollar ended higher yesterday, and appears ready to continue logging gains against its major counterparts today. Loonie is mostly higher right now, although commodity market struggles could change the outcome later.

Canadian Dollar Gains on Greenback & Yen, Unable to Beat Euro

As most other currencies, the Canadian dollar gained on the US dollar today. The loonie also rallied versus the Japanese yen but was unable to beat the extremely powerful euro.

Canada’s GDP Shrinks, Canadian Dollar Unfazed

Canada’s economy shrank at the start of the current year as was demonstrated by today’s report from Statistics Canada. Yet in a surprising display of resilience the Canadian currency jumped after the report instead of falling.

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