The Canadian dollar fell today as Canada’s consumer prices declined more than was expected. Still, the currency was able to outperform the euro and the Japanese yen.
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
December 19th, 2014 at 20:36
December 17th, 2014 at 22:24
The Canadian dollar soared today with the help of rising price for crude oil. This allowed the currency to ignore negative domestic macroeconomic data though it was unable to outperform the US dollar.
December 16th, 2014 at 11:26
Canadian dollar continues to struggle in Forex trading, thanks in large part to falling oil prices. There doesn’t seem to be a bottom to the oil collapse, and the loonie is most lower against its major counterparts as a result of the oil weakness.
December 06th, 2014 at 5:03
The Canadian employment report was not nearly as good as the US one. As a result, the Canadian dollar dropped against the US dollar, touching the lowest level since July 2009. Surprisingly enough, the loonie managed to log gains against such major currencies as the euro and the Japanese yen.
December 05th, 2014 at 1:37
The Canadian dollar rallied on Wednesday after the Bank of Canada kept its monetary policy unchanged. The currency fell on Thursday and continued to move down during the early Friday’s session, though it did not erase its Wednesday’s gains completely.
December 03rd, 2014 at 11:37
The Canadian dollar has been struggling recently, but seems to be enjoying something of a breather right now. The loonie is a little bit higher against the US dollar, thanks in part to slightly higher oil prices today, as well as some profit taking.
December 01st, 2014 at 11:49
Canadian dollar is getting a little help today in currency trading on the FX market, thanks to better economic data. The embattled loonie is making some progress against some of its major counterparts, thanks to better GDP data and expectations of a good manufacturing report. However, these gains aren’t expected to last as oil prices continue to drop.
November 28th, 2014 at 23:27
The Canadian dollar ended today’s session with losses even though Canada’s economy demonstrated growth in September following the previous month’s decline. It looks like the currency remains under pressure from yesterday’s OPEC announcement.
November 27th, 2014 at 17:57
Today, trading is lighter than usual due to a holiday in the United States. But this does not mean that the Forex market was quiet. Traders were focusing on the OPEC meeting, and it certainly affected the market. The Canadian dollar together with other oil-related currencies sank after the gathering.
November 21st, 2014 at 20:25
The Canadian dollar rose today, touching the highest level in a month against its US counterpart, as Canada’s inflation exceeded expectations. The currency also rallied to the strongest level in a year versus the euro and reached a new multi-year high against the Japanese yen.