The Canadian dollar rose against its US counterpart on Tuesday, as prices of oil, one of Canada’s main exports, remained steady. The Canadian currency got more strength following a report that showed an increase in average Canadian oil rig count.
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 fell against such currencies as the euro and the Japanese yen today due to the sharp drop of crude oil prices. The loonie managed to gain on the US dollar, which was rather soft on Monday.
The USD/CAD dropped significantly after the release of positive employment data for the month of December. The employment data released by Statistics Canada today indicates that Canada created thousands of jobs in December as opposed to job cuts, which were widely anticipated.
The Canadian dollar was little changed against the US dollar on Thursday, even as oil prices moved higher.
The Canadian dollar dropped today, falling for the third consecutive day against its major peers, after Canada’s economy demonstrated unexpected contraction in October.
The Canadian dollar gained more strength against its US counterpart on Wednesday, as investors stayed off the US dollar until a monetary policy decision that comes out from the Federal Reserve is released today.
The Canadian dollar strengthened against the US dollar on Tuesday to its highest level since October 19, as gains in oil prices continued lifting the commodity currency.
The US dollar weakened against the Canadian dollar during Monday’s trading session following a rally in oil prices. Global oil prices rose significantly following the announcement that the meeting between Organization of the Petroleum Exporting Countries and non-OPEC countries was successful.
The Canadian dollar was boosted against the British pound on Wednesday. The commodity currency has been supported by rising oil prices since the Organization of the Petroleum Exporting Countries announced that a deal to cut oil output was made in its meeting last week.
The Canadian dollar rose against most of its major peers (with the exception of the Japanese yen) with the help of rather positive employment data released from Canada over the trading session.