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Canadian Dollar CAD
Central Bank: Bank of Canada
Interest Rate: 1.75%
Public Debt to GDP Ratio, 2017: 98.2%
Trade Balance, 2017: -$10.7 bln.
Inflation, 2017: 1.6%
Major commodity exporter
medium
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.
The Canadian dollar was performing extremely poor today. While the loonie has managed to erase intraday losses versus the US dollar by now, the Canadian currency remained below the opening level against other most-traded rivals. The most likely reason for the drop was the decline of crude oil prices. Positive Canadian employment data did little to help the currency.
The Canadian dollar is mixed against a basket of currencies on Tuesday as investors sift through new motor vehicle sales data and foreign securities purchases for May. The loonie was sent lower on crashing energy prices, which is bad news for a resource-rich market. Traders will now wait for June inflation numbers that are expected to be lower than in May.
The New Zealand dollar versus the Canadian Dollar currency pair looks as if it confirmed the weekly support of 0.8692.
The Canadian dollar versus the Japanese yen currency pair managed to get even closer to the resistance line that dates back to the beginning of March 2019, and this brings even more possibilities for the bulls.
The Canadian dollar dropped today following the monetary policy decision made by the Bank of Canada. The drop was short-lived, though, and the loonie has erased losses versus most of its major peers by now. The currency even gained on the US dollar, which weakened due to the outlook for interest rate cuts from the Federal Reserve.
The Australian dollar vs. the Canadian dollar considered the direction of the main trend, continuing the downwards move. What could happen next is very interesting.
The Canadian dollar is mixed against a basket of currencies on Tuesday, driven primarily by housing data that pleased and displeased investors. The loonie is also waiting for the Bank of Canada (BOC)’s decision on interest rates this week that will either mirror its American counterpart or adopt a wait-and-see approach.
The Canadian dollar ended the last trading week as the strongest among most-traded currencies despite surprisingly poor employment data. What expects the loonie during the current week? The week will be less eventful than the previous one, with the Bank of Canada monetary policy meeting being the only major event important for the Canadian currency specifically.
The Canadian dollar was firm today even as domestic macroeconomic data was surprisingly poor. While the loonie fell versus its US counterpart, which itself got boost from positive domestic data, the Canadian currency was firm against other major rivals.
The Canadian dollar versus the Japanese yen currency pair came back above and confirmed the solid support area of 81.38, and thus fueled the bullish optimism. The question is where will the bulls mark their profits?
