The Canadian dollar traded within a tight range against its US counterpart on Monday, following a week that was void of any big events. The Canadian currency was supported by wholesale trade growth data today, but it failed to gain any steady momentum.
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 moved slightly lower on Wednesday against the US dollar and the euro. The Canadian currency erased most of its earlier losses following strong manufacturing sales data in Canada.
The Canadian dollar had small gains against its US counterpart on Thursday, one day before the release of employment data and unemployment numbers in Canada. The US dollar was weaker today after the number of jobless claims missed estimates.
The Canadian dollar rose against the US dollar to post small gains on Wednesday, as the Canadian currency reversed its direction after the release of Canadian housing starts data. The Canadian dollar has been under pressure from President Donald Trump’s protectionist approach in the past days.
The Canadian dollar dropped against the US counterpart on Tuesday to touch its lowest in two weeks, as oil prices moved lower and the greenback gained strength. Prices of crude oil, one of Canada’s main exports, declined due to concerns towards rising production levels in the United States.
The Canadian dollar was falling against its US counterpart on Friday but managed to erase its losses, closing near the opening level. What is more, CAD ended the week with gains versus USD. It was the second consecutive weekly gain and the fifth in six weeks.
The Canadian dollar gained on its weak US counterpart during Tuesday’s trading but was unable to beat such strong currencies as the euro and the Japanese yen despite supportive fundamentals.
The Canadian dollar rose a bit against its US counterpart on Monday and accelerated the rally on Tuesday as the US immigration ban hurt the greenback. The Canadian currency also rose versus the euro but fell against the safe haven currencies — the Swiss franc and the Japanese yen.
The Canadian dollar dipped against its US peer on Thursday, as traders worried that the protectionist approach that US President Donald Trump has towards his nation’s economy might harm Canada’s. Trump already took measures that signaled major upcoming changes to US economic policy.
The Canadian dollar today weakened against its major peers such as the US dollar following the release of retail data for the month of December that was below expectations. Statistics Canada reported that the Consumer Price Index for December rose by 1.5% year-over-year, which was below the widely expected figure of 1.7%.