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Canadian Dollar (CAD) |
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This article describes a currency traded on the global foreign exchange market. View articles referencing this currency. |
The Canadian Dollar (also known as "Loonie" [1]) is the currency of the Nation of Canada. It is denoted with a leading $, though in an international context the $ is often appended to a "C" to distinguish the currency from other dollars. For example, within the nation of Canada $69 is read "sixty-nine dollars," while in an international context the same value might be written C$69 and read "sixty-nine dollars, Canadian".
The chart at left shows the USD/CAD currency pair; the number of Canadian dollars equivalent to 1 U.S. Dollar (USD).
Forex Markets [1]
Trading Hours
The most active CAD trading hours are from CAD Economic news (7:00AM ET / 12:00 GMT) and US Economic News (8:30AM ET / 13:30 GMT)[1].
Key Currency Crosses
The 3 key currency crosses are
Things to know when trading the Canadian Dollar (CAD)
The prices of oil have enormous influence on USD/CAD because Canada is one of the world’s largest oil producers. Therefore when oil prices rise, it tends to drive the Canadian dollar higher and vice versa
Nickname – The Canadian dollar frequently known as the “loonie.” This nickname comes from the image of a common loon, a well-known Canadian bird on one side of a one dollar Canadian coin.
Central Bank - The Bank of Canada conducts monetary policy meetings 8 times a year and their decisions on interest rates could have significant ramifications for the currency market. Mark Carney is currently the Bank of Canada Governor. He was appointed to the 7 year term in February 2008.
Most Active Trading Hours – We tend to see the most significant volatility in the Canadian dollar when Canada economic data is released which is usually at 7am ET (12:00 GMT) or 8:30am ET (13:30 GMT)
What Does the Economy Rely On? – Like many other major developed nations, the service sector in Canada makes up the largest percentage of GFT. However Canada is also one of the world’s few net exporters of energy and most important supplier of agricultural products. They also have the world’s second largest oil reserves.
Who Does the Economy Rely on for Trade? – Due to the geographical proximity, Canada’s most important trade partner is the United States, followed by the United Kingdom and China.
Market Moving Economic Releases – Central bank rate decisions are usually the most market moving indicators, which mean that they can create the greatest volatility for any currency followed by the employment report, the consumer spending and inflation reports.
The Canadian Economy
Key Facts
The Canadian Economy is comprised of 69.6% Services, 28.4% Industrial, and 2% Agriculture. It's largest trading partners are US, UK and China. Some other key facts about the Canadian Economy:
- US Consumes 80% of Canadian Exports
- Ninth Largest Oil Exporter
- Seventh Most Traded Currency
- Ninth Largest Economy in the World
- Large Logging and Oil Industries
General Economic Statistics
| 2008 GDP Estimate | USD $1.56 Trillion |
| Population: | 33.5 Million |
| Interest Rate* | 0.25% |
| Inflation** | 1.20% |
| Trade Balance*** | CAD $1.10 Billion |
Market Moving Economic Releases
- BoC Rate Decision
- IVEY PMI (Purchasing Managers Index)
- Retail Sales
- Consumer Prices
- Employment Change
- GDP (Gross Domestic Product)
- Trade Balance
References
- ↑ 1.0 1.1 1.2 FX360.com, Japanese Yen (JPY) Factsheet by Kathy Lien
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