Canadian Dollar (CAD)
Canada — Bank of Canada
Canadian dollar — North American oil-linked currency, closely tied to crude prices and the US economy.
CAD/USD
0.73451
CAD/USD Exchange Rate
Economic Indicators
| Indicator | Latest | Previous | Change | Date |
|---|---|---|---|---|
| Policy Rate | 2.75 | 2.75 | 0.00 | 2025-06-01 |
| Inflation | 1.7 | 1.9 | -0.20 | 2025-05-31 |
| Core Inflation | 3.1 | 3.1 | 0.00 | 2025-06-01 |
| Gdp | 2323.093 | 2324.182 | -1.09 | 2025-05-31 |
| Unemployment | 7.0 | 6.5 | +0.50 | 2025-05-31 |
| Trade Balance | -5678.4 | 3341.4 | -9019.80 | 2025-05-31 |
| Retail Sales | 0.0 | 6.09 | -6.09 | 2025-05-31 |
| Ppi | 5.94 | 6.11 | -0.17 | 2025-05-07 |
Bank of Canada Press Releases
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2026-04-29The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%.
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2026-04-29The Canadian economy is expected to grow at a moderate pace as it continues to adjust to US tariffs. Inflation has moved up due to higher oil prices linked to the war in the Middle East. It is projected to then ease back to the 2% target in 2027.
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2026-04-29Governor Tiff Macklem discusses the Monetary Policy Report and the key issues involved in the Governing Council’s deliberations about the monetary policy decision.
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2026-04-01This is an account of the deliberations of the Bank of Canada’s Governing Council leading to the monetary policy decision on March 18, 2026.
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.
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