The Canadian Dollar, also referred to as the Loonie, is referred to as a commodity currency.
Both the value of the Loonie and Bank of Canada monetary policy are materially influenced by global commodity prices and the global economic outlook.
While a commodity currency, the Loonie is also a benchmark currency, meaning that central banks globally hold Canadian Dollars as a reserve currency.
The USD/CAD pairing is equal 5th most liquid pairing, accounting for 5% of total transaction volume in the FX markets.
The Loonie is the 7th most traded currency in the world.