Canadian Dollar (CAD)

Canada — Bank of Canada

Canadian dollar — North American oil-linked currency, closely tied to crude prices and the US economy.

FX Session:
New York
CAD/USD
0.71464
CAD/USD Exchange Rate
Economic Indicators
Indicator Latest Previous Change Date
Policy Rate 2.75 2.75 0.00 2025-07-01
Inflation 1.9 1.7 +0.20 2025-06-30
Core Inflation 3.1 3.0 +0.10 2025-07-01
Gdp 2325.571 2340.657 -15.09 2025-06-30
Unemployment 6.5 7.2 -0.70 2025-06-30
Trade Balance 0.0 6.8 -6.80 2025-06-30
Ppi 6.58 6.43 +0.15 2025-06-18
Bank of Canada Press Releases
CFTC Commitment of Traders — CAD

About the Canadian Dollar (CAD)

The Canadian dollar (CAD), nicknamed the 'loonie', is the official currency of Canada and one of the most-traded currencies in the world. It is heavily influenced by oil prices, US economic conditions, and the Bank of Canada's policy stance relative to the Federal Reserve.

Bank of Canada: monetary policy framework

The Bank of Canada (BoC) sets the overnight rate target at eight scheduled decisions per year. It targets the midpoint of a 1–3% CPI inflation control range and publishes a quarterly Monetary Policy Report with detailed projections and a press conference following each MPR meeting.

What moves the CAD?

  • Bank of Canada overnight rate and Monetary Policy Report.
  • WTI crude oil price — Canada is a major net oil exporter.
  • US economic data and the Fed-BoC policy-rate differential.
  • Canada CPI, core CPI (trim and median measures).
  • Canada labour force survey: employment, unemployment, wages.
  • BoC Business Outlook Survey and Senior Loan Officer Survey.

Key data and events to watch

  • BoC interest-rate decision and Monetary Policy Report.
  • Canada monthly CPI and labour force survey.
  • WTI crude oil and Western Canadian Select differential.
  • BoC Business Outlook Survey (quarterly).
  • Cross-border trade and US ISM data.

Frequently asked questions about the Canadian Dollar

Why is the loonie sensitive to oil prices?
Canada is one of the world's largest oil producers and exporters, with energy a meaningful share of total exports and federal/provincial revenue. Higher oil prices boost the trade balance, fiscal position, and investment, which historically supports CAD.
How closely does CAD track the US dollar?
Roughly three-quarters of Canadian goods exports go to the United States, so the CAD is highly sensitive to US growth, the Fed-BoC policy gap, and Canada-US 2-year yield differentials. Periods of US dollar strength often weigh on USD/CAD direction in nuanced ways.
What inflation measure does the Bank of Canada target?
The BoC targets 2% CPI inflation, the midpoint of a 1–3% control range. It also publishes preferred core measures (CPI-trim and CPI-median) that strip out volatile components.
All Currencies
🇺🇸 USD — US Dollar 🇪🇺 EUR — Euro 🇬🇧 GBP — British Pound 🇯🇵 JPY — Japanese Yen 🇦🇺 AUD — Australian Dollar 🇨🇦 CAD — Canadian Dollar 🇨🇭 CHF — Swiss Franc 🇳🇿 NZD — New Zealand Dollar 🇸🇪 SEK — Swedish Krona 🇩🇰 DKK — Danish Krone 🇵🇱 PLN — Polish Złoty 🇧🇷 BRL — Brazilian Real 🇲🇽 MXN — Mexican Peso 🇹🇼 TWD — New Taiwan Dollar 🇹🇭 THB — Thai Baht 🇮🇩 IDR — Indonesian Rupiah 🇵🇪 PEN — Peruvian Sol 🇮🇱 ILS — Israeli New Shekel 🇦🇪 AED — UAE Dirham 🇩🇿 DZD — Algerian Dinar 🇪🇬 EGP — Egyptian Pound 🇸🇦 SAR — Saudi Riyal 🇷🇺 RUB — Russian Ruble 🇵🇰 PKR — Pakistani Rupee 🇵🇭 PHP — Philippine Peso 🇻🇳 VND — Vietnamese Dong 🇺🇾 UYU — Uruguayan Peso IS ISK — Icelandic Krona XOF XOF — West African CFA franc RO RON — Romanian Leu