Forex Traders Continue to Bet Against Loonie

Canadian dollar is lower today, continuing its weakness. Forex traders expect the Bank of Canada to keep rates steady this week, and a hike isn’t expected anytime soon.

Loonie is heading lower today, after a brief show of strength earlier. Forex traders and speculators are keeping the Canadian dollar lower, continuing to bet on long-term weakness. A lot of this belief comes from the fact that a sluggish economy means that the Bank of Canada isn’t likely to raise interest rates anytime soon.
BOC Governor Stephen Poloz seems reluctant to tighten rates, and the rest of his policymaking team appears to agree. They will meet tomorrow to determine policy and issue a statement. However, many expect the BOC to stay the course with interest rates. There are still concerns about the economy, especially with the housing market performing uncertainly, and with the labor situation still experiencing struggle.
While the Canadian economy didn’t experience the same level of difficulty as other economies following the 2008 financial crisis, it is still struggling, and that is reflected in monetary policy.
At 14:16 GMT loonie is mostly lower. USD/CAD is up to 1.0921 from the open at 1.0900. EUR/CAD is up to 1.4882 from the open at 1.4881. GBP/CAD is up to 1.8287 from the open at 1.8254.

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