Canada’s economy shrank at the start of the current year as was demonstrated by today’s report from Statistics Canada. Yet in a surprising display of resilience the Canadian currency jumped after the report instead of falling.
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
March 31st, 2015 at 20:28
March 26th, 2015 at 10:58
Canadian dollar is heading higher today, thanks to a surge in oil prices. Crude is on the rise after the Saudi strikes in Yemen, and that is helping the loonie against its major counterparts.
March 24th, 2015 at 10:49
Canadian dollar is getting some help today from higher oil prices. Dollar weakness has set in, and oil prices are moving higher, providing the loonie with a bit of an advantage.
March 20th, 2015 at 19:21
Today’s economic data from Canada was mixed, resulting in varying performance of different CAD-crosses. The currency gained on the US dollar and the Japanese yen but dropped against the euro.
March 18th, 2015 at 13:34
Canadian dollar is continuing its fall against the greenback today, heading lower than it’s been in years as Forex traders look forward to today’s Federal Reserve announcement. It’s also not helping matters that oil prices continue to fall.
March 16th, 2015 at 19:01
The Canadian dollar gained a little on the US dollar and the Japanese yen today after the release of positive economic data from Canada and disappointing reports from the United States. At the same time, the currency logged a substantial drop against the euro.
March 13th, 2015 at 10:59
Oil continues to struggle in the markets, and that is bringing the Canadian dollar lower as well. Right now, loonie continues to drop against the greenback, even though it (like every other currency) is higher against the euro.
March 11th, 2015 at 11:02
Canadian dollar is trading mixed today, gaining against the major European currencies, but heading lower against the US dollar.
March 06th, 2015 at 16:06
The Canadian dollar dropped against its US counterpart after the release of non-farm payrolls. The loonie fared better against other currencies, rising against the euro and trading sideways versus the Japanese yen, even though Canada’s economic indicators were not particularly good.
March 05th, 2015 at 20:24
The Canadian dollar was broadly lower against its rival’s during Thursday’s trading even though fundamentals were largely in favor of the currency. The loonie climbed yesterday after the Bank of Canada kept its monetary policy stable.