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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, 2018: -$36.3 bln.
Inflation, 2018: 2.3%
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 is failing to rebound to kick off the trading week as the currency was stung by a disappointing October jobs report on Friday. The loonie was further hampered by slumping housing numbers. Is the Canadian economy at a standstill or is there room for growth?
The New Zealand dollar versus the Canadian dollar currency pair is trying to rotate towards 0.8514.
The Canadian dollar is falling against multiple major currency rivals midweek, caused by disappointing trade numbers and a lower purchasing managers’ index (PMI) reading. The loonie, which has been one of the best-performing currencies in international markets, continues to lose its momentum as the year winds down.
The Australian dollar versus the Japanese yen currency pair behaved as expected, as it appreciated from 0.8918 to 0.9039.
The Canadian dollar today crashed against the US dollar after the Bank of Canada announced its interest rate decision, which was widely interpreted as being dovish. The USD/CAD extended its gains as the price of crude oil fell to new lows taking down the loonie given Canada’s reliance on oil exports as a source of foreign income.
The Australian dollar versus the Canadian dollar currency pair gives some signs of bottoming around the 0.8900 psychological level.
The Canadian dollar is trading relatively flat against most competing currencies to kick off the trading week. After witnessing the August federal deficit come in larger than anticipated, investors are now waiting to see how the Bank of Canada (BOC) moves ahead with interest rates now that the general election is over and the Liberals have secured a minority government.
The Great Britain pound versus the Canadian dollar currency pair reached the important level of 1.6986, an area from where two outcomes are possible.
The New Zealand dollar versus the Canadian dollar currency pair had the chance to make new lows, but, by failing, it got above a zone that could propel it towards new highs.
The Canadian dollar is weakening against several major currency pairs on Tuesday as investors comb through the latest retail sales report. The loonie’s slide also comes after Prime Minister Justin Trudeau secured a minority government following the recent federal election. With the electoral contest out of the way, traders will keep a focus on a central bank that refused to budge on interest rates before the election.
