Canadian dollar general info
Representing a little more than 5% of the foreign exchange market 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 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.
Market Outlook for the Canadian dollar
7-February-19: January was a fantastic month for the Canadian dollar. A gain of 4 percent relative to the US dollar took USD/CAD away from 19-month highs near C$1.365 into the low C$1.31s.
A recovery in the oil market has played a big part in the loonie’s 2019 recovery. By the time of this report, oil had gained nearly $12 per barrel, or 23 percent, on 2018 lows. The price of oil remains vital to Canada’s economy; it had fallen by as much as 40 percent in the October-December period.
Going forward, risks to the Canadian dollar include, of course, oil, and the return of global trade tensions.
Towards the end of 2018, Goldman Sachs predicted a strong energy market rebound in 2019 — more so than has already been realised — and this would underpin Canada’s currency.
In February, Westpac reaffirmed its view that the Canadian dollar would be an outperformer in 2019. Canada’s growth picture is more secure than those of the eurozone, UK or Australia, Westpac believes, and as a result, the Bank of Canada will be more hawkish this year relative to other G10 central banks, driving CAD appreciation.
The Japanese FSA has announced it will finally remove a ¥1 million (US$9,000) cap on cross-border money transfers handled by non-banking entities, paving the way for a major overhaul of Japan’s remittance industry.
21 Feb, 2019 by - Last updated:22 Feb, 2019
The British pound was in high demand on Tuesday ahead of an important meeting between British PM Theresa May and EU officials, at which investors are hoping for a Brexit breakthrough.
19 Feb, 2019 by - Last updated:19 Feb, 2019
Those intending to pick up euros this week should consider heeding warnings offered by MUFG. The bank expects the euro to move towards cheaper levels in the coming days and it would therefore be unwise to pay rates offered on Monday.
18 Feb, 2019 by
OFX has partnered with BestExchangeRates to offer you fee free money transfers. If you register with OFX using the below BestExchangeRates FX partner deal promo code link you won’t pay the usual fees* for transfers. OFX – zero fee offer OFX is the new unified brand name for OzForex, USForex, UKForex, NZForex, and CanadianForex It […]
23 Nov, 2017 by - Last updated:23 Nov, 2018
The holy grail when you send money abroad is finding an organisation that you can trust and one that offers the best exchange rates along with transparent, smart and straightforward customer service.
24 Jul, 2018 by - Last updated:18 Nov, 2018
We take a look at OFX and review their exchange rates, service and ease of use and user reviews.
8 Dec, 2018 by - Last updated:22 Feb, 2019
In this article we take a look at Travelex Canada exchange rates and foreign currency services. Getting your travel money from the local Travelex branch is convenient but with a little planning (and ordering online) you can also save money for your next trip abroad. Travelex Canada Exchange Rates – How do they Compare? Travelex […]
22 Jun, 2018 by - Last updated:21 Feb, 2019
WorldFirst is a leading foreign exchange and international transfers provider offering a fast international payments process and industry best rates. Simply open an account online, it only takes a couple of minutes, costs nothing and is obligation free. Compared with banks, you can usually save between 0.5% and 3% of the amount transacted – putting […]
5 Feb, 2018 by - Last updated:21 Feb, 2019