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 Sinks with Oil Prices

The Canadian dollar sank yesterday and retained its losses today due to the drop of crude oil prices. Crude declined as the complicated situation with Greece deterred traders from buying commodities.

Loonie Loses Ground After Ending Last Week Strong

Canadian dollar ended last week on a strong note, but the currency is mostly lower today as a new week gets under way. Forecasts expect to see the loonie weaken through the rest of 2015.

Canadian Dollar Leaps as Employment Data Supports

The Canadian dollar made a huge leap higher today after the release of amazingly good employment data from Canada. The currency was able to outperform the US dollar, which itself had been bolstered by employment data from the United States.

Loonie Drops Back After Yesterday’s Gains

Fueled by US dollar weakness and better oil prices, the loonie headed higher yesterday. Today, though, the Canadian dollar is down again, heading lower against the greenback and its other major counterparts.

Canadian Dollar Demonstrates Weakness During Trading Week

The Canadian dollar experienced weakness during the past week. While the currency managed to rally against the Japanese yen, the loonie demonstrated losses versus the US dollar and the euro.

Loonie Recovers After Hit from Canadian GDP

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 Firms by End of Thursday’s Trading

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.

Canadian Dollar Continues to Struggle

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.

Loonie Loses Ground, But Hope Appears

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.

Canadian Dollar Falls as Oil Slides

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.

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