Canadian Dollar CAD

 

Detailed information and fundamental factors

Central Bank: Bank of Canada

Interest Rate: 0.50%

Public Debt to GDP Ratio, 2014: 92.6%

Trade Balance, 2014: $17 bln.

Inflation, 2014: 2%

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

Loonie Struggles Against Major Currencies on GDP, Oil

Canadian dollar is once against struggling overall against its major counterparts. While the loonie is managing gains against the greenback right now, it is having a more difficult time against other major currencies.

Canadian Dollar Pares Losses After Drop

The Canadian dollar dropped today, tracking decline of crude oil. Signs of slowdown in economies around the world were hurting currencies, especially those tied to growth. Yet the loonie is attempting to bounce right now, and it looks like the currency may pare most of its losses by the end of Friday’s trading.

Canadian Dollar Resumes Decline with Crude Oil

The Canadian dollar dropped today, reaching the lowest level since March 2009 against the US dollar, as crude oil prices resumed decline, joining other commodities in free fall.

CAD Rallies vs. USD as Crude Oil Halts Decline

The Canadian dollar gained on its US peer today as crude oil prices steadied, helping the loonie to halt its decline. The Canadian currency did not fare as well against other major rivals, being flat against the Japanese yen and sinking versus the euro.

Loonie Continues to Struggle Along With Oil

Canadian dollar is struggling again today, thanks in large part to continued concern over last week’s surprise rate cut and due to falling oil prices.

Canadian Dollar Ends Week as Third Weakest Currency

The Canadian currency had a pretty rough week, falling against most of its major peers. And yet it was not the weakest currency during the past week as it was still able to gain on the euro and the New Zealand dollar.

Canada’s CPI Supportive for Loonie

The Canadian dollar fell a bit against the US dollar and the Japanese yen but rallied versus the euro during the Friday’s trading session. Macroeconomic data released from Canada today was largely positive for the currency.

Loonie Extends Move Down vs. USD, Performs Better vs. Other Rivals

The Canadian dollar continued to move down against its US counterpart following yesterday’s big slump. The currency held steady against the Japanese yen and even managed to gain on the euro.

Bank of Canada Makes Surprise Interest Rate Cut, CAD Tumbles

The Bank of Canada surprised the market by cutting interest rates today. The Canadian dollar tumbled, falling more than 1 percent, as a result. The drop was especially big against the US dollar as the Canadian currency reached the lowest level since March 2009.

Canadian Dollar Follows Crude Oil Prices

The Canadian dollar sank during Tuesday’s trading but bounced to trade basically flat against its major peers. The moves of the currency followed the moves of crude oil prices after the Iranian nuclear deal was announced.

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