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Canadian Dollar CAD
Central Bank: Bank of Canada
Public Debt to GDP Ratio, 2016: 98.8%
Trade Balance, 2016: -$28.9 bln.
Inflation, 2016: 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 gained to the highest level in two years versus its US counterpart today after the Federal Reserve released a relatively dovish policy statement. The loonie also rallied against the weak Swiss franc but dropped versus the euro and Japanese yen.
The Canadian dollar rose today thanks to the surprisingly good wholesale sales reading, which increased chances for monetary tightening from the Bank of Canada.
The Canadian dollar moved higher against its US counterpart on Friday, following the release of solid retail sales data that reflected growing consumer demand. A fresh reading for the consumer price index also supported the loonie today after matching analyst estimates.
The Canadian dollar gained on its major rivals today, propelled by positive macroeconomic data and gains of crude oil prices.
The Canadian dollar today rallied higher against the US dollar after the Bank of Canada hiked its overnight lending rate by 25 bps meeting market consensus. The weaker US dollar also contributed to the USD/CAD pair’s decline as markets reacted negatively to Janet Yellen‘s testimony before Congress.
The Canadian dollar today weakened against the US dollar despite the release of positive Canadian housing starts data by the Canada Mortgage and Housing Corporation. The loonie tried to rally against the greenback after the release, but the greenback rallied higher after the release of the US JOLTS job openings report.
The Canadian dollar ended the week as the strongest major currency because the events during the week’s trading fueled speculations that the Bank of Canada will hike interest rates as soon as the next week.
The Canadian dollar jumped today, rising more than 1% against some of its most-traded rivals, after the release of a better-than-expected employment report.
The Canadian dollar was flat versus the US dollar and the Japanese yen and fell against the euro and the Swiss franc even though fundamentals should have supported the currency.
The Canadian dollar was stable against its US counterpart and retreated a bit versus other most-traded currencies on Wednesday after rallying on Tuesday.
