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 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
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.
The Canadian dollar fell today after the release of jobs data that showed an unexpected drop of employment. The drop was fairly limited, though the currency reached a multi-year low versus the Japanese yen.
The Canadian dollar was falling on Wednesday due to domestic macroeconomic data and the general negative sentiment among Forex market participants. The currency managed to rebound with the help of rising prices for crude oil, though, and is trading not far from the opening level at the start of Thursday’s session.
The Canadian dollar was swinging between gains and losses during Thursday’s trading as positive domestic fundamentals were combating concerns about the impact of the Brexit on the world’s economy.
The Canadian dollar was rather weak today due to the aftershock of Britain’s referendum that has ended in a vote to leave the European Union. The loonie joined other commodity currencies that were suffering from the resulting risk-negative market sentiment.
The Canadian dollar rallied today with the help of rising prices for crude oil and the positive general market sentiment that was beneficial to commodity-linked currencies.
Most currencies rallied against the US dollar after the Federal Reserve’s policy announcement, but the Canadian dollar did not join the parade. The explanation for this is simple: prices for crude oil fell and dragged the Canadian currency along with them.
The Canadian dollar fell on Monday, following the drop of crude oil prices, though the currency is trying to recover during early Tuesday’s trading.