The Canadian dollar dropped on Monday, ignoring positive domestic data, as prices for crude oil retreated. Speculations about monetary tightening from the US Federal Reserve were the main perpetrator in the drop.
Canadian Dollar CAD
Central Bank: Bank of Canada
Public Debt to GDP Ratio, 2015: 95.4%
Trade Balance, 2015: -$12.6 bln.
Inflation, 2015: 1.2%
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
There were two important economic releases from Canada scheduled for today, the Consumer Price Index and retail sales, and both of them turned out to be disappointing. Unsurprisingly, the market reacted to the news by pushing the Canadian dollar lower.
The Canadian dollar was little changed at the start of the Friday’s trading session after rallying against the US dollar and the Japanese yen on Thursday. The rally was caused by the rise of crude oil prices.
The Canadian dollar climbed against its US peer but dropped against the euro and the Japanese yen despite the support from rising oil prices and manufacturing sales.
The Canadian dollar tumbled today after Canada’s employment fell unexpectedly and the trade balance deficit showed a surprise increase to a record high.
Canadian dollar is still recovering from last week’s rather large plunge against major currencies. Loonie is higher today against its major counterparts, even though there are still concerns about the Canadian economy and some commodities are still struggling.
Loonie is mostly lower right now, following earlier gains. The Canadian dollar saw some initial gains today on better than expected economic data, but many of those gains have disappeared following uncertainties moving forward, along with an end to a recent winning streak by oil.
Canadian dollar is getting a little help today, thanks to a recent upbeat forecast from the Bank of Canada, and thanks to improving oil prices. Loonie is mostly higher today, and there are hopes that the currency can maintain some of its recent advances going forward.
The Canadian dollar fell during the current trading session, yet again following the moves of crude oil. Today, crude went down, and so did the currency. Nevertheless, the loonie managed to outperform the yen, which tumbled even harder.