The Canadian dollar advanced today after the Bank of Canada left its monetary policy unchanged. The currency was soft previously as retail sales data was rather negative.
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
October 22nd, 2014 at 17:00
October 21st, 2014 at 0:37
The Canadian dollar started the week with losses against some of its major peers, including the euro and the Japanese yen, and continued to fall today. Monday’s economic data was positive, but it did not help the currency.
October 18th, 2014 at 14:03
The Canadian dollar fell over the week as prices for crude oil were slipping. The currency bounced by the end of the week, trimming its weekly losses, due to a positive inflation report and recovery of prices for crude.
October 16th, 2014 at 10:24
Canadian dollar continues to struggle, thanks in large part to falling oil prices and stock prices. The loonie reached a five year low against the greenback earlier, and it appears that the struggle is likely to continue.
October 14th, 2014 at 10:48
Better employment data released toward the end of last week is still helping the Canadian dollar in Forex trading today. Indeed, there are hopes that Canadian rates will start rising again. This hope is allowing the loonie to log gains against European currencies, even as it continues to struggle against the greenback.
October 10th, 2014 at 19:28
The Canadian dollar advanced today with the help of an impressive employment report that beat analysts’ projections by a wide margin. The currency retained its gains against the euro but was unable to maintain the rally versus the the US dollar and yen and will likely close below the opening level against these currencies.
October 09th, 2014 at 10:14
Canadian dollar is struggling a bit in currency trading on FX market after some gains earlier. Loonie is down against European currencies, and is seesawing between gains and losses when it comes to the US dollar.
October 06th, 2014 at 19:11
The Canadian dollar was yet another currency to rally against the US dollar today. Positive macroeconomic data helped the currency to rally against the Japanese yen too, but the loonie was unable to gain on the euro, trading near the opening level versus the shared 18-nation currency.
October 04th, 2014 at 3:38
The Canadian dollar ended Friday with losses against its US peer due to overwhelmingly positive employment report from the United States. At the same time, the poor trade balance data from Canada itself did not prevent the currency from rallying against the euro and the Japanese yen.
October 03rd, 2014 at 10:29
Loonie continues to struggle against the US dollar, even as it makes gains against European currencies like the pound and the euro. Disappointing economic data and lower commodities aren’t helping the Canadian dollar.