The Canadian dollar  is regarded as one of the world’s most stable, traded currency by long-term investors and intraday traders in large numbers. Interest has increased locally because residents now benefit from using brokers with $1 million protection offered by the Canadian Investor Protection Fund (CIPF), which pays out if a broker closes down.

Because the Canadian dollar is the fifth most commonly held currency, it usually does not show the sort of hair-raising price volatility that befalls smaller currencies. But that’s not to say traders can’t take advantage. Intraday corrections come thick and fast on the back of regular scheduled economic news announcements, just like the Retail Sales one on Friday, July 20. This is a monthly statistic, along with Labour Force Survey (Canada’s employment figures), Consumer Price Index and Industrial Price Index. Traders also eagerly await the quarterly Gross Domestic Product figures.

But it’s commodity prices that have a huge impact on the Canadian dollar. The country relies heavily on its natural resources of oil, lumber and natural gas, and exports much of this abroad. This means that not only is foreign demand a pressure factor, but also the price of crude oil itself. When the price of crude slumped from US$105 to US$45 in 2014/15, Canada’s economy took a hit, sending it into a downturn for the first time in years. It’s often said that commodity prices, especially oil, have a greater influence on the Canadian dollar than economic news, and it’s no great surprise given the country’s reliance on its natural resources. Oil prices rise since the beginning of 2018 which helped the Canadain dollar to remain strong versus the greenback and other currencies. As long as oil prices rise, the Canadian dollar might be a correct position.