The Canadian dollar slumped today, touching the lowest level since March against its US peer, as inflation slowed last month, decreasing probability of an interest rate hike from the Bank of Canada.
Canadian Dollar CAD
Central Bank: Bank of Canada
Interest Rate: 1.00%
Public Debt to GDP Ratio, 2011: 87.4%
Trade Balance, 2011: $1.4 bln.
Inflation, 2011: 2.9%
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
May 17th, 2013 at 22:19
May 16th, 2013 at 22:33
The Canadian dollar dropped today as speculations about reduction of quantitative easing by the US Federal Reserve continued, trimming risk appetite of investors and making them less willing to buy risky currencies.
May 15th, 2013 at 23:01
The Canadian dollar gained against the euro and the US dollar as macroeconomic data from the eurozone and the United States was bad. The currency was flat versus the Japanese yen.
May 15th, 2013 at 1:31
The Canadian dollar demonstrated a big drop against its US counterpart yesterday and continued to fall today on concerns that Canada’s economic growth will trail that of the United States. The currency was also weak against other majors, including the euro and the yen.
May 13th, 2013 at 23:51
The positive retail sales report from the United States boosted not only the US dollar, but the Canadian dollar as well. The loonie managed to outperform most of the major currencies.
May 10th, 2013 at 23:18
Canadian employment growth was below forecasts, making the Canadian dollar close lower against its US peer. At the same time, the currency closed flat against the euro and higher versus the Japanese yen.
May 10th, 2013 at 14:12
Canadian dollar is heading lower today, dropping along with other commodity currencies. With commodities plunging, it is little surprise that currencies like the loonie are losing ground today.
May 08th, 2013 at 22:12
The Canadian dollar advanced against its US peer today as metal prices surged, increasing the appeal of the currency related to commodities. At the same time, the loonie went down against the euro on slowing housing in Canada.
May 07th, 2013 at 21:38
Canadian Dollar , Carry Trade
The Canadian dollar advanced today amid increasing demand for the currency from traders interested in high yield as continuous currency wars make it difficult to find.
May 07th, 2013 at 2:14
The Canadian dollar rose against the euro and erased losses against the US dollar yesterday and remained firm today. At the same time, the currency was soft versus the Japanese yen, paring yesterday’s rally.