The Canadian dollar continues to weaken against the greenback, thanks in large part to the recent difficulties with oil prices, and with commodity prices in general. The loonie is still maintaining its gains over the European currencies, though, mainly because of the relative strength of its economy.
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
September 30th, 2014 at 10:46
September 26th, 2014 at 10:23
Canadian dollar tumbled yesterday, falling all the way below the 90 cent level against the US dollar, due to expectations for the global economy and to policy divergence with the greenback. Today, the loonie is trying to eke out gains against its major counterparts.
September 17th, 2014 at 2:00
The Canadian dollar was little changed today following yesterday’s big jump. The rally was caused by both domestic fundamentals and developments on the global markets that were largely beneficial for the loonie.
September 11th, 2014 at 10:19
The latest housing starts data was a bit disappointing, and the result offset some of the better news out of Canada about building permits. Concerns about the housing market continue to weigh, and the continued pressure on oil prices isn’t helping the loonie, either.
September 10th, 2014 at 3:01
The Canadian dollar bounced today, trimming yesterday’s losses versus its US peer and the euro. The currency also extended its rally versus the Japanese yen for a third straight session.
September 05th, 2014 at 21:33
The Canadian dollar fell today as economic data from Canada was unexpectedly bad. The losses were limited, though, perhaps because market participants paid more attention to news from the Unite States.
September 05th, 2014 at 10:45
Canadian dollar is trading mixed today, looking for solid direction as the dust from this week settles. The Bank of Canada kept things steady, but elsewhere, there is plenty of turmoil.
September 03rd, 2014 at 16:48
The Canadian dollar jumped today after the Bank of Canada issued a rather optimistic statement following its monetary policy meeting. The currency reached the highest level since January against the Japanese yen.
September 02nd, 2014 at 10:17
Canadian dollar is trading mixed today, but there are some that feel that there is strength coming for the currency. Thanks to the Tim Horton’s deal, as well as the possibility of higher demand in Europe for energy from non-Russian sources, the loonie could see some improvements.
August 28th, 2014 at 11:21
Loonie is retaining some of its recent strength in Forex trading, logging gains on the Burger King plan to buy Tim Hortons, as well as getting some help from expectations for positive economic data, due out tomorrow.