Canadian Dollar General Info
The three letter currency code for the Canadian Dollar is CAD
and the symbol is $.
It is the domestic currency in
Representing a little more than 5% of the foreign exchange market’s daily turnover, the Canadian dollar (ISO: CAD) is the world’s sixth most traded currency. Frequently called the ‘loonie’ by foreign exchange traders due to the image of a loon (an aquatic bird) on Canada’s one-dollar coin, the currency’s value is heavily influenced by commodities prices, particularly oil. For this reason, the Canadian dollar is often labelled a ‘petro-currency’. Canada currently has the world’s third largest oil reserves and is the world’s fourth largest oil exporter.
Canadians are mostly concerned with the value of their currency against the US dollar, since nearly 80% of Canadian exports go south of the border. In the past two decades, the Canadian dollar’s lowest value against its US counterpart occurred in January 2002 when the CAD/USD exchange rate traded at just 0.6178. The currency’s two-decade high occurred in November 2007 (following a boom in the oil price) when CAD/USD reached 1.1041.
CAD - Market View
In early July, the Canadian dollar reached a 10-month high against the US dollar of 0.7745 (USD/CAD 1.2912). The currency remained supported by hawkish rhetoric coming from the Bank of Canada (BoC).
BoC Council member Carolyn Wilkins lit a fire under the Canadian dollar in mid-June with her remarks to an audience at the Asper School of Business in which she hinted at a possible rate hike by the BoC. Wilkins said that “the Governing Council will be assessing whether the considerable monetary policy stimulus presently in place is still required.”
Wilkins’ comments were followed by equally suggestive ones from BoC Governor Stephen Poloz, and reflect what may be a significant change in stance of central bankers in Canada, who earlier in 2017 were still suggesting that rate cuts were on the table.
Since the 2008/09 financial crisis, the Bank of Canada, like the central banks of most advanced economies, has been forced to adopt especially low interest rates. Canada’s national interest rate is currently at 0.5% – near to record lows – and has been at or below 1% since 2009. The Bank of Canada makes its next decision on interest rates on July 12th.
Prior to Wilkins’ comments, in 2017 Canada’s currency had been following the broad trends in the oil price. When crude fell 15% between early-March and early-May, Canadian dollar weakness pushed USD/CAD from 1.3175 to 1.3793. As oil then rallied for much of the rest of May, USD/CAD declined.
1 Day 1 Week: Canadian Dollar finished the last session of the week up against the United States Dollar with the CAD/USD at 0.7975, a rise of 0.46% and also up for the last 7 days with a rise of 1.57%.
3 Month Trend: CAD/USD is trading at 3-month highs and for the quarter is up 7.29%.
Canadian Dollar - News & Market Updates
Canadian Dollar was friday up 0.41% against the United States Dollar, up 0.16% against the Euro, up 1.07% against the Mexican Peso, up 0.24% against the Indian Rupee, up 0.99% against the Australian Dollar, up 0.24% against the British Pound Sterling and up 0.13% against the Philippine Peso. CAD 7 Day Cross-Rate Charts Read on... View article >
Posted on 21 July 2017 | 9:16 pm GMT
USDCAD is hovering around major support (1.2575) ahead of this morning’s May Retail Sales and inflation data. June CPI is forecast to rise 1.0%. vs. May 1.3%. A better than expected number will drive USDCAD toward 1.2510 while a weaker number may get ignored. The Bank of Canada is willing to look past weak inflation... View article >
Posted on 21 July 2017 | 12:23 pm GMT
Pound Sterling (GBP) GBP/USD 1 Week Chart Yesterday’s June UK retail sales figures caused the Pound to slump – despite being much more positive than had been expected. Sales grew 0.9% on the month, against predictions of 0.5%, or 0.6% compared to forecasts of 0.4% if auto fuel sales are removed. However, combined with data... View article >
Posted on 21 July 2017 | 7:52 am GMT
Canadian Dollar was up 0.1% against the United States Dollar, down -0.86% against the Euro, down -0.1% against the Mexican Peso, up 0.32% against the Indian Rupee, up 0.09% against the Australian Dollar, up 0.49% against the British Pound Sterling and up 0.12% against the Philippine Peso. CAD 7 Day Cross-Rate Charts Read on for... View article >
Posted on 20 July 2017 | 9:16 pm GMT
The European Central Bank policy meeting statement is due shortly. EURUSD has declined in a ragged fashion, falling from 1.1531 to 1.1497. Traders are expecting the ECB to keep policy unchanged. EURUSD has risen in recent weeks on expectations that the ECB will announce the end a QE tapering program soon. EURUSD drifted lower overnight,... View article >
Posted on 20 July 2017 | 11:58 am GMT
Pound (GBP) GBP/USD 1 Week Chart Appetite for the Pound was soft yesterday, as markets continued to digest UK inflation data and await this morning’s retail sales figures. If the reports do show the forecast recovery in sales during June, this will ease fears that the UK economy will not have been able to rebound... View article >
Posted on 20 July 2017 | 7:57 am GMT
Canadian Dollar was up 0.25% against the United States Dollar, up 0.59% against the Euro, up 0.58% against the Mexican Peso, up 0.18% against the Indian Rupee, down -0.24% against the Australian Dollar, up 0.41% against the British Pound Sterling and up 0.54% against the Philippine Peso. CAD 7 Day Cross-Rate Charts Read on for... View article >
Posted on 19 July 2017 | 9:16 pm GMT
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