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

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.

Rate Hike Speculation Helps Canadian Dollar

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.

Decline of Crude Oil Leads to Losses for Canadian Dollar

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.

Oil Rally Lifts Loonie Higher in Forex Trading

Oil is rallying, and that is helping the Canadian dollar in Forex trading today. Loonie is mostly higher against its major counterparts.

Employment Situation Weighs on Canadian Dollar

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.

CAD Ekes Out Gains as Oil Nears $60 a Barrel

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.

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