Canadian Dollar Futures

Canadian Dollar Futures Before the Canadian Parliament established the Canadian Dollar in 1871, practically every province was conducting transactions in local currencies. Today, the Canadian Dollar value has floated ever since 1970, and is the 7th most traded currency in the world. Just as in the U.S., slang for a dollar is a “buck”, which dates back to the same term used to describe the value of a beaver pelt in the 17th century.

Canadian Dollar Contract Specifications
Contract Size 100,000 Canadian dollars
Contract Month Listings Six months in the March quarterly cycle (Mar, Jun, Sep, Dec)
Settlement Procedure Physical Delivery
Daily FX Settlement Procedure
Final FX Settlement Procedure
Position Accountability 6,000 contracts
Ticker Symbol CME Globex Electronic Markets: 6C
Open Outcry: CD
AON Code: LK
Minimum Price Increment $.0001 per Canadian dollar increments ($10.00/contract). $.00005 per Canadian dollar increments ($5.00/contract) for CAD/USD futures intra-currency spreads executed on the trading floor and electronically, and for AON transactions.
Trading Hours Open Outcry (RTH): 7:20am-2:00pm CT
Globex (ETH): Sundays: 5:00pm – 4:00pm CT next day.
Monday – Friday: 5:00pm – 4:00pm CT the next day, except on Friday – closes at 4:00pm and reopens Sunday at 5:00pm CT.
CME ClearPort: Sunday – Friday 5:00pm – 4:15pm CT with a 45–minute break each day beginning at 4:15pm
Last Trade Date 9:16 a.m. Central Time (CT) on the business day immediately preceding the third Wednesday of the contract month (usually Tuesday).
Block Trade Eligibility Yes.
Block Minimum 100 Contracts
Exchange Rules These contracts are listed with, and subject to, the rules and regulations of CME.
Source: CME

Canadian Dollar Facts

Canadian dollar futures allow traders to assess value against the U.S. dollar, as well as the opportunity to address risk from currency fluctuations in other foreign trade markets.

Currency rates are determined by a one base currency quoted in relation to a different currency. Major currencies that are traded are floating. Central bank monetary policies can affect the value of currency. The Bank of Canada regulates monetary policy for its currency. For instance, low interest rates dictated as policy can be bearish for currency value because new money is being pumped into the market. This is unappealing to foreign investors because returns yield those low interest rates. In contrast, high interest rates set as policy are bullish and appealing to foreign investors because of high interest yields from the returns. Currency values can be also be affected by the nation’s current account balance. An excess or influx in the balance is considered to be bullish, while a deficit or drainage is considered to be bearish. Economic stability and investment in the country also help strengthen currency values because international investors are likely to buy into that country’s favorable markets.

Source: Barchart

Last updated May 2013

Additional Info

Canadian Dollar News Articles

  • Canadian dollar nears four-month low (9/11/2014) - The Canadian dollar was down near a four-month low as the nation's largest export, crude oil, fell to its lowest level in over a year. 
  • Slow economic growth causes loonie to weaken (8/1/2014) - Data showing that the economy expanded in May failed to temper fears that growth is lagging behind that of the country's largest trading partner, the U.S., leading Canada's dollar to drop to its weakest level in nearly two months.
  • Loonie falls as Canada’s economy weakens (7/21/2014) - The Wall Street Journal reports that since last Friday, the loonie has slipped one percent against the U.S. dollar.
  • Loonie edges up against greenback (7/7/2014) - The Canadian dollar rose in value on Monday against the world's reserve currency prior to the release of economic data about the country's business climate, according to The Canadian Press.
  • Aussie, Kiwi push higher after strong Chinese manufacturing data (6/23/2014) - South Pacific currencies pushed higher on Monday after a private report noted the economy of China demonstrated its top growth in six months, Reuters reports.
  • Loonie slips as Bank of Canada leaves interest rates unchanged (4/16/2014) - The Canadian dollar slipped against the world's reserve currency during the midweek trade session after the Bank of Canada left interest rates unchanged at record-low levels, according to Bloomberg.
  • Loonie poised to climb after weak performance thus far this year (3/11/2014) - The Canadian dollar is likely to reverse losses that have plagued the monetary unit this year as it endures its worst start to a year since the early 1970s, according to Bloomberg.
  • Loonie aims higher after weakest start to year in four decades (2/13/2014) - The Canadian dollar has been slowly recovering from its worst start to a year since the early 1970s, according to Bloomberg.
  • Aussie holds advance against greenback (1/28/2014) - The Australian dollar on Tuesday held on to its biggest rise in about two weeks against the world's reserve currency as market sentiment indicated the monetary unit's recent losses were overdone, according to Bloomberg.
  • Aussie dips against all top rivals (1/23/2014) - The Australian dollar on Thursday dove in value on Thursday against each of its 16 major rivals on Thursday after China, the biggest destination of its exports, released weaker-than-expected data, according to Bloomberg.

Canadian Dollar Blog Posts

  • 6/6 Pre-Dawn Update (6/6/2014) - Good Morning— Happy Friday. I hope everyone had a great week, lets finish it up on a high note and get involved in the weekend. We have a few positions on and there are a few that I want to bring to your attention. So lets get crackin’… In the Indices and Financials: With yesterday’s... Read More.
  • Beyond the “Spotlight” (8/12/2013) - The Trade Spotlight advisory service applies the GBE trading methodology (buying or selling commodity contracts based on breakouts of chart formations and technical indicators) to identify one to two trade setups per week.
  • Developing Trade in March Canadian Dollar (6CH3 DAILY) (12/12/2012) - This is a sample entry from Tom Dosdall’s email newsletter, Dosdall Daily Edge, published on December 12, 2012. The Canadian is attempting to grind higher again today and our TAS Tools are confirming a bullish trade opportunity. The market is expecting a friendly announcement toward further QE at today’s (US) FOMC meeting which would likely... Read More.
  • Market Spotlight: US Dollar Index (10/10/2012) - The two key factors affecting a currency’s value are central bank monetary policy and the trade balance.
  • The US Dollar and Inflation (9/28/2012) - The US Dollar Index is a measure of the value of the United States Dollar compared to a basket of currencies weighted accordingly: Euro 57.6 % weight Japanese yen 13.6 % weight Pound sterling 11.9 % weight Canadian dollar 9.1 % weight Swedish krona 4.2 % weight Swiss franc 3.6 % weight The US Dollar... Read More.