Canadian Dollar Futures

The Canadian Dollar is one of the 8 most popularly traded currencies in the world and is one of the factors that led to Canada replacing Russia as the 10th largest economy in the world. The GDP of Canada currently sits at $1.65 trillion and is expected to get as high as $1.79 trillion. Canada’s GDP is heavily boosted by their activity in exports and manufacturing. The backbone of Canada’s exports are merchandising exports which account for 68%.

Bank of Canada (BoC)

The Back of Canada (BoC) is the entity held responsible to surveying and keeping track of Canada’s monetary policy and the value of the Canadian dollar. The BoC keeps a watchful eye the fluidity of world commodity prices because resources are such an integral part of Canada’s economy. Due to this, worldwide commodity prices greatly influence the value of the Canadian Dollar.

Canadian Dollar Futures History

The Canadian Dollar has been the main currency of Canada since 1858 when it replaced the Canadian pound. The Canadian dollar was originally pegged to the U.S. dollar using the gold standard of one dollar equaling 23.22 grains of gold. Although originally pegged to the U.S. dollar, in 1950 the Canadian dollar become the first currency allowed to float, it was then pegged back to the U.S. from 1962-1970, but has been floating ever since.

Canadian Dollar Futures Facts

CAD futures can be traded on the futures market in both full size contracts (100,000 CAD) and e-mini contracts (10,000 CAD). However, CAD futures may only be traded in e-mini size contracts 2 months out of the March quarterly cycle. The CAD is often influenced by the price of oil and because of this is considered a commodity currency.

Trading Canadian Dollar Futures

  • In some foreign markets the CAD is also referred to as the “loonie”
  • CAD futures can be traded twenty months in the march quarterly cycle (Mar, June, Sep, Dec)
  • The USD/CAD has recently been affected by speculation over possible changes to NAFTA
  • The US is Canada’s largest trade partner by a large margin, because of this relationship the CAD is sensitive to changes in the USD
  • CAD is the 6th most commonly held currency

 

Canadian Dollar Futures Contract Specs

Contract SymbolContract UnitPrice Quotation
CAD100,00 CADdollars per contract
Trading ExchangeTrading HoursTick Value

CME GLOBEX

CME Clearport

17:00 - 16:000.0005 USD = 1.00 CAD

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This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.