Definition – What does Canadian Dollar (CAD) mean?
The Canadian dollar (CAD) is the official currency of Canada. The Canadian dollar is considered to be one of the major currencies and is paired with all the other major currencies, including the U.S. dollar (USD), Japanese yen (JPY), Swiss franc (CHF), euro (EUR), pound sterling (GBP) and Australian dollar (AUD).
The Canadian dollar is also referred to as the loonie.
ForexTerms explains Canadian Dollar (CAD)
The Canadian dollar is considered to be one of the commodity currencies because the economy of Canada is heavily linked to the price of oil. Although Canada is relatively small in terms of population, the mineral and oil wealth make it one of the world’s 10 largest economies in terms of GDP.
The Canadian dollar is less stable than the Australian dollar – another commodity currency. One of the reasons for this is that oil makes up a larger portion of the Canadian economy, and oil tends to be a more volatile commodity. Another reason is that the Canadian economy depends heavily on trade with the U.S., so its fortunes fluctuate with U.S. economic reports in addition to the Canada-specific releases.