News

Loonie Surges after BoC
The Canadian dollar strengthened to 1.2625 per USD, the strongest level since April of 2018, after the Bank of Canada left key rates at record low levels and pledged to continue supporting the economy with its QE programme of at least $4 billion per week. Policymakers also painted a brighter outlook for 2022 due to vaccine rollout, fiscal stimulus, stronger foreign demand and higher commodity prices.
Published on 2021-01-20

Loonie Little Changed
The Canadian dollar lost some ground in the second week of January to above 1.27 per USD, moving away from 1.263 last week which was the strongest since April of 2018, as soaring US Treasury yields pushed the USD higher. On the domestic front, the Canadian economy advanced 0.4% in October, the 6th straight month of growth and the Manufacturing PMI for December was the strongest on record. Also, the Bank of Canada remains committed to providing the monetary policy stimulus needed to support the recovery and achieve the inflation objective.
Published on 2021-01-13

Loonie Retreats amid General USD Strength
The Canadian dollar lost some ground in the second week of January to around 1.28 per USD, moving away from 1.263 last week which was the strongest since April of 2018, as soaring US Treasury pushed the USD higher. On the domestic front, the Canadian economy advanced 0.4% in October, the 6th straight month of growth and the Manufacturing PMI for December was the strongest on record. Also, the Bank of Canada remains committed to providing the monetary policy stimulus needed to support the recovery and achieve the inflation objective.
Published on 2021-01-11

Loonie Extends Gains to Start 2021
The Canadian dollar traded higher around 1.27 per USD to start 2021, extending a 2.1% gain in 2020, amid a general dollar weakness as bullish sentiment across global markets prompted investors to buy riskier assets. Coronavirus vaccination rollout is raising prospects of a swift economic recovery in the new year, although the pandemic is still far from controlled. On the domestic front, the Canadian economy advanced 0.4% in October, the 6th straight month of growth and the Manufacturing PMI for December was the strongest on record. Also, the Bank of Canada remains committed to providing the monetary policy stimulus needed to support the recovery and achieve the inflation objective.
Published on 2021-01-04

Canadian Dollar Hits 32-month High
USDCAD decreased to a 32-month low of 1.2688
Published on 2021-01-04

Loonie Hovers at 2-1/2-Year High
The Canadian dollar changed hands at $1.278, remaining close to its highest level since May 2018 of $1.26998 hit earlier this month, and headed for a 1.5% yearly gain in 2020. The currency has crossed the $1.45 mark in March, a level not seen since January 2016 on the back of a quick drop in oil prices and concerns about the coronavirus outbreak. Meantime, the Bank of Canada slashed interest rates by 150bps to a record low of 0.25 percent in December.
Published on 2020-12-30

Loonie Extends Losses
The Canadian dollar retreated to 1.29 per USD in the 4th week of December from 1.27 in the previous weeks which was highest level since May of 2018, as a general risk-off sentiment boosted the USD. A new coronavirus strain was announced by the UK, prompting several countries including Canada to ban flights from the UK. A plunge in oil prices also pushed the Loonie down.
Published on 2020-12-22

Loonie Retreats as Covid-19 Fears Mount
The Canadian dollar retreated to 1.28 per USD in the 4th week of December from 1.27 in the previous weeks which was highest level since May of 2018, as a general risk-off sentiment boosted the USD. A new coronavirus strain was announced by the UK, prompting several countries including Canada to ban flights from the UK. A plunge in oil prices also pushed the Loonie down.
Published on 2020-12-21

Loonie Remains Strong
The Canadian dollar remained close to its highest level since May of 2018 at around $1.27, boosted by higher oil prices, a weaker dollar and a brighter economic outlook as Canada begins its Covid-19 vaccination campaign. Earlier in the month, the Bank of Canada left interest rates at a record low and kept asset purchases steady at $4 billion a week while reinforcing its commitment to provide the monetary policy stimulus needed to support the economic recovery. Meantime, Prime Minister Trudeau said that "until the virus is significantly more under control everywhere around the world, we're not going to be releasing the restrictions at the US border". However, the ban does not affect trade.
Published on 2020-12-17

Loonie Hovers at 2-1/2-Year High
The Canadian dollar remained close to its highest level since May of 2018 at around $1.27, boosted by higher oil prices, a weaker dollar and a brighter economic outlook as Canada begins its Covid-19 vaccination campaign. Earlier in the month, the Bank of Canada left interest rates at a record low and kept asset purchases steady at $4 billion a week while reinforcing its commitment to provide the monetary policy stimulus needed to support the economic recovery. Meantime, Prime Minister Trudeau said that "until the virus is significantly more under control everywhere around the world, we're not going to be releasing the restrictions at the US border". However, the ban does not affect trade.
Published on 2020-12-14

Loonie Strongest since May of 2018
The Canadian dollar touched 1.271 per USD in the second week of December, the strongest since May of 2018, amid a surge in oil prices, a weaker dollar and a brighter economic outlook as Canada approved its first coronavirus vaccine. Earlier in the month, the Bank of Canada left interest rates at a record low and kept asset purchases steady at $4 billion a week while reinforcing its commitment to provide the monetary policy stimulus needed to support the economic recovery. Meantime, Prime Minister Trudeau said that "until the virus is significantly more under control everywhere around the world, we're not going to be releasing the restrictions at the US border". However, the ban does not affect trade.
Published on 2020-12-11

Loonie Extends Gains as Oil Surges
The Canadian dollar strengthened further to 1.271 per USD, the strongest since May of 2018, amid a surge in oil prices, a weaker dollar and a brighter economic outlook as Canada approved its first coronavirus vaccine. Earlier in the month, the Bank of Canada left interest rates at a record low and kept asset purchases steady at $4 billion a week while reinforcing its commitment to provide the monetary policy stimulus needed to support the economic recovery. Meantime, Prime Minister Trudeau said that "until the virus is significantly more under control everywhere around the world, we're not going to be releasing the restrictions at the US border". However, the ban does not affect trade.
Published on 2020-12-10

Loonie Extends Gains after BoC Decision
The Canadian dollar strengthened further to 1.277 per USD after the Bank of Canada left interest rates at a record low and kept asset purchases steady at $4 billion a week while reinforcing its commitment to provide the monetary policy stimulus needed to support the economic recovery. The loonie has been strengthening since early November to levels not seen since May of 2018, amid a weaker US dollar, hopes that a coronavirus vaccine could be used soon and oil prices at the support level of $46 a barrel. Meantime, Prime Minister Trudeau said that "until the virus is significantly more under control everywhere around the world, we're not going to be releasing the restrictions at the US border". However, the ban does not affect trade.
Published on 2020-12-09

Canadian Dollar Edges Down on US-China Trade Tensions
The Canadian dollar depreciated slightly to $1.28, amid rising US-China trade tensions after Reuters reported the US was planning sanctions on some Chinese officials over Hong Kong. Still, the currency remained close to its highest level since May 2018 of $1.2768 hit in the previous week, amid a weaker US dollar, hopes that a coronavirus vaccine could be used soon and oil prices at the support level of $44 a barrel. Meantime, Prime Minister Trudeau said that "until the virus is significantly more under control everywhere around the world, we're not going to be releasing the restrictions at the US border". However, the ban does not affect trade.
Published on 2020-12-07

Loonie at Near 2-Year High
The Canadian dollar has been strengthening since early November and reached 1.294 per USD in the first week of December, a level not seen since October of 2018, boosted by a weaker US dollar, hopes that a coronavirus vaccine could be used soon and oil prices at the support level of $44 a barrel. Meanwhile, the Canadian economy expanded at a record 40.5% annualized qoq rate in Q3 and the government delivered a fiscal update which includes an additional stimulus plan of up to CAD 100 billion to be launched once the COVID-19 crisis eases. Also, Prime Minister Trudeau said that "until the virus is significantly more under control everywhere around the world, we're not going to be releasing the restrictions at the US border". However, the ban does not affect trade.
Published on 2020-12-02

Canadian Dollar Hits 25-month High
USDCAD decreased to a 25-month low of 1.2924
Published on 2020-12-02

Loonie Extends Gains
The Canadian dollar strengthened for the third straight session to 1.2965 per USD on the first trading day of December, remaining close to levels not seen since early-January, supported by a weaker dollar and hopes that a coronavirus vaccine could be used soon. Moderna joined Pfizer in requesting emergency US FDA authorization for its COVID-19 vaccine candidate and both sought regulatory clearance in the EU. Meanwhile, fresh data showed the Canadian economy expanded at a record 40.5% annualized qoq rate in Q3, lower than forecasts of 47.6%. Also, the government delivered a fiscal update which includes an additional stimulus plan of up to CAD 100 billion to be launched once the COVID-19 crisis eases
Published on 2020-12-01

Loonie Hits 3-Week High
The Canadian dollar touched a three-week high of $1.294, ahead of the country’s federal government fiscal update. Canada’s government is expected to unveil new spending plans and detail the cost of its emergency support measures as a second wave of coronavirus infections forced several provinces to renew restrictions. The currency was supported by a weaker dollar and hopes that a coronavirus vaccine could be used soon. Moderna announced that it will request emergency clearance from the US FDA for its COVID-19 vaccine after new data confirms it is more than 94% effective in preventing the infection and was safe.
Published on 2020-11-30

Loonie Rises to Near 3-Week High
The Canadian dollar touched $1.2977, its highest level since November 9th, as Bank of Canada Governor Macklem said that the country’s economy could recover faster than expected if consumer spending jumps in the wake of a successful COVID-19 vaccination effort. At the same time, a senior official at Canada’s drug regulator said that the country could approve Pfizer’s coronavirus vaccine around December. The currency was also supported by a weaker dollar.
Published on 2020-11-27

Loonie Falls from 2-Week High
The Canadian dollar traded lower at 1.30 against the greenback, moving away from a two-week high touched in the previous session ahead of Bank of Canada’s Governor Macklem and Senior Deputy Governor Wilkins appearance before the House of Commons Standing Committee on Finance later in the day. The currency was pressured by a drop in oil prices as investors remain concerned over near term fuel demand. On October 28th, the Bank of Canada left its benchmark interest rate unchanged at the effective lower bound of 0.25%, and maintained its extraordinary forward guidance, reinforced and supplemented by its QE program.
Published on 2020-11-26