The Canadian dollar edged lower against the US dollar as oil prices fell and investors anticipated a possible interest rate cut by the Bank of Canada. Speculators have increased their bearish bets on the Canadian dollar, citing falling inflation and rising unemployment.
edged lower against its U.S. counterpart on Tuesday as oil prices fell and investors priced in some risk that the Bank of Canada would signal the start of an interest rate cutting campaign at this week’s policy decision.
“Even if the Bank of Canada does not cut rates tomorrow, the market seems to be positioned for either a dovish comment or further weakness in the Canadian dollar,” said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC. “The case is building … inflation has fallen more than expected for the past two months and the unemployment rate is up to 6.1 per cent from 5 per cent a year ago,” Chandler said.
U.S. crude oil futures settled down 1.4 per cent at $85.20 a barrel, giving back some recent gains for a second day. Oil is one of Canada’s major exports.
Canadian Dollar Oil Prices Interest Rate Cut Bank Of Canada Inflation Unemployment
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