The Canadian dollar weakened against the US dollar and a number of other major peers on Tuesday after the United States decided to impose higher duties on lumber coming from Canada. Traders preferred to stay off the market ahead of a highly anticipated report on Canadian retail sales in February that is due to be released tomorrow.
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 gave up all of the gains it had achieved against its main counterparts earlier on Monday, following a drop in oil prices that weighed on the loonie. Canadian economic data was supportive of the currency today as wholesale sales were better than expected in February, but the positive data was overshadowed by concerns about a global crude oil supply glut.
The Canadian dollar dropped against its US counterpart today, falling for the second consecutive day, as geopolitical tensions were mounting. The loonie declined against other most-traded peers as well due to the drop of crude oil prices.
The Canadian dollar today strengthened against the US dollar even as the Bank of Canada announced that its interest rates will remain unchanged. Although the bank maintained interest rates, it highlighted the fact that the Canadian economy could achieve sustainable growth into the future.
The Canadian dollar traded marginally lower against the US dollar and other major peers on Tuesday, as crude oil prices continued to head higher due to growing concerns that global supply might be disrupted. The loonie was lower today as traders anticipated a monetary policy decision from the Bank of Canada tomorrow.
The Canadian dollar rallied against its major peers today thanks to solid macroeconomic data and the rally of crude oil prices.
The Canadian dollar rose against its US counterpart and the euro on Thursday, after recovering from the losses it had earlier today. The loonie appeared unaffected by fresh housing data that revealed a smaller value of building permits in February.
The USD/CAD currency pair today declined briefly after the Bank of Canada released the Spring 2017 results of its Business Outlook Survey, which indicated a positive economic sentiment among the business community. Despite this brief rally, the currency pair continued on an upward trend as the US dollar proved much stronger against the loonie given the weaker crude oil prices.
The USD/CAD today declined significantly after the release of Canadian GDP data by Statistics Canada, which exceeded market expectations. The decline was short-lived as the US dollar rallied higher after the release of the University of Michigan’s confidence and expectations data for March.
The Canadian dollar edged higher against its US counterpart on Monday, as investors became uncertain about the future of Donald Trump’s economic agenda. A healthcare bill that aimed to dismantle and replace Obamacare failed to pass in Congress on Friday, which raised concerns that the economic plans of the president might face a great deal of resistance.