The Canadian dollar dropped to the fresh lows against its US peer during the Thursday’s session and also fell against some other majors including the euro. The currency has plenty of reasons for its weakness, both domestic and global.
Canadian Dollar CAD
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%
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
January 29th, 2015 at 22:54
January 23rd, 2015 at 11:37
Loonie continues to fall against the greenback, even though oil is a little bit higher today. The Canadian dollar is doing better against European currencies, though.
January 21st, 2015 at 20:04
It looks like central banks decided to rock the market continuously. Last week it was the Swiss Nation Bank that shocked traders, today it was the Bank of Canada that made an unexpected move by cutting its benchmark overnight rate. Needless to say, the Canadian dollar suffered as a result of such decision.
January 14th, 2015 at 13:17
Oil prices continue to pull on the Canadian dollar today, bringing it down against the US dollar to a level not seen since 2009. Loonie is likely to continue to fall further, as long as the oil slide is in effect.
January 09th, 2015 at 18:41
Macroeconomic reports from Canada were universally bad today, driving the Canadian dollar lower against most of major peers. The currency reached the lowest level since May 2009 against the US dollar.
January 09th, 2015 at 0:13
The Canadian dollar was mixed at the early trading on Friday. While the currency attempted to extend its rally versus the Japanese yen, it was trading virtually flat against the euro and the US dollar.
December 19th, 2014 at 20:36
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.
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.