The Canadian Dollar

The Canadian dollar, nicknamed the loonie, is also a commodity currency, meaning that it often moves in step with the commodities markets—notably crude oil, precious metals, and minerals. With Canada being such a large exporter of such commodities, the loonie often reacts to movements in underlying commodities prices, especially that of crude oil.15 Traders often trade the Canadian dollar to speculate on the movements of commodities or to hedge positions in the commodities market

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