The Canadian dollar went down today, falling for the third consecutive trading session against the Japanese yen, after economic reports released by Statistics Canada missed market expectations.
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 little changed during Thursday’s Asian trading session after demonstrating mixed performance during the Wednesday’s session.
The Canadian dollar gained against its most-traded rivals over the week with the help of crude oil rally caused by the surprise announcement from the Organization of Petroleum Exporting Countries.
The Canadian dollar rose against some of its most-trading peers on Friday but gains against the US dollar were limited while against the euro the loonie ended the session flat. The main reason for the currency’s rally was the strong GDP report.
The Canadian dollar fell on Thursday after two days of gains and maintained its weakness during the Asian trading hours on Friday.
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.