The strength of the Canadian dollar will hinge on movements in the price of oil, the country's largest export, Daily FX has claimed.In the site's weekly trading forecast, foreign exchange market analyst Terri Belkas noted that the Canadian dollar, known as the loonie, was one of the strongest performers last week, although much of its strength could be attributed to relative weakness in the dollar.This week manufacturing and consumer price index data are expected to provide support for the Canadian dollar, but oil prices are expected to remain the single largest influencing factor.Since the discovery of vast tar sands in the Alberta province, Canada has been catapulted up in the league of the world's largest oil-producing nations and it now has the second largest proven reserves after Saudi Arabia.However, profits from the tar sands projects were pummelled in the wake of the financial crisis when oil slumped to $36 a barrel. Complex extraction and refinement procedures require a much higher selling price for the process to be profitable.