The Canadian dollar was under pressure during the Wednesday’s trading session as falling oil prices and concerns about potential monetary easing from the Bank of Canada made the currency not particularly attractive.
Performance of the loonie (as Canada’s currency is often nicknamed) is usually tied to moves of prices for crude oil. So happened that the commodity logged substantial losses and dragged the currency down along the way today. Optimism about production cuts from the Organization of Petroleum Exporting Countries is waning as it looks like members of the organization have hard times agreeing to reduce output and potentially suffer loss of a market share.
Last week’s monetary policy meeting of the Bank of Canada was not helping the loonie either. The central bank released a dovish policy statement, in which reduced its growth outlook. The dovish stance resulted in speculations that the bank may decide to ease its monetary policy, and such talks are detrimental to the currency.
USD/CAD rose from 1.3350 to 1.3373 as of 20:37 GMT today. EUR/CAD rallied from 1.4533 to 1.4584. CAD/CHF fell from 0.7444 to 0.7429.
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