Loonie
Forex slang for the Canadian Dollar (CAD) or USD/CAD currency pair.
Loonie is trader slang for the Canadian dollar and the USD/CAD pair, named after the loon bird on Canada's one-dollar coin. CAD is heavily tied to oil exports.
Loonie is trader slang for the Canadian Dollar (CAD) and the USD/CAD pair. The nickname comes from the common loon bird depicted on Canada's one-dollar coin. Canada's economy is heavily tied to oil exports.
How It Works
- "Buying the Loonie" = going long CAD (short USD/CAD)
- "Selling the Loonie" = going short CAD (long USD/CAD)
- Note: USD/CAD quote - higher = weaker CAD
- Strongly correlated with crude oil prices
Trading Tips
Watch WTI crude oil for direction
Most active during North American session
Bank of Canada rate decisions cause volatility
Loonie Example
Say oil rallies $10 a barrel on supply news. USD/CAD, the loonie, typically falls as the Canadian dollar strengthens, because crude is Canada biggest export earner. Oil up often means loonie up.
How Traders Use Loonie
Watch crude whenever you trade the loonie. Strong oil supports CAD and weak oil sinks it, so check the oil chart before holding USD/CAD through an OPEC meeting.
Related Terms
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