The Canadian dollar fell on Thursday after two days of gains and maintained its weakness during the Asian trading hours on Friday.
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
The Canadian dollar was rising during the Asian trading session on Thursday, managing to maintain the rally it started on Wednesday. The rise of the currency was caused by the news about a surprise decision by the Organization of Petroleum Exporting Countries to limit its crude oil production.
The Canadian dollar was attempting to move lower on Wednesday after showing a decent performance on Tuesday despite the drop of crude oil prices.
The Canadian dollar fell against its major peers on Monday despite the rally of Canada’s most important export commodity — crude oil.
There are plenty of factors that could impact the performance of the Canadian dollar this trading week. Unfortunately for the currency, most of them are negative. Let’s look at the most important of them.
The Canadian dollar dropped against its rivals today as consumer prices and retail sales reports failed to reach market expectations, suggesting that Canada’ economy does not feel particularly well.
The Canadian dollar was little changed during the Asian trading session after closing almost flat at the end of the Monday’s session. As usual, the currency was following moves of crude oil, which this time has not been able to help the loonie in determining its trend.
The Canadian dollar was steady by the end of the previous trading session but lost its ground during the current session, falling along with crude oil prices. The currency dropped about 1% against the US dollar and the euro. It also declined for the third straight session versus the Japanese yen.
The Canadian dollar was moving lower against its major counterparts during the Monday’s trading session but has rebounded against the US dollar and the euro as of now and trimmed its losses versus the Japanese yen.