The Canadian dollar was falling today, though the losses were relatively small. The major theme for the currency this week will be the monetary policy meeting scheduled by the Bank of Canada on Wednesday.
Crude oil continued to fall today, staying below the $30 level. Crude is the key export for Canada, meaning that continuing decline of prices bodes ill for the nation’s economy.
Market participants are wondering if the BoC is going to cut interest rates this week to mitigate the negative impact of falling oil prices. Some analysts argue that the impact of such a move would be limited as monetary policy is already extremely accommodative and additional easing would bring diminishing returns, therefore it is better for the central bank to stay put. Yet most experts predict the BoC will cut its main rate by quarter of point to 0.25 percent.
USD/CAD ticked up from 1.4520 to 1.4557 as of 21:53 GMT today. EUR/CAD gained from 1.5821 to 1.5860. CAD/JPY attempted to rally, rising from 80.66 to 81.05 intraday, but retreated to 80.55 as now.
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