The Canadian dollar began weakening late in the day yesterday in response to the risk-off sentiment and the stock market selloff. The USD to CAD rate is now at 1.363 which is the higher end of the recent range. While overall global sentiment is the driving force in CAD movements these days, the deteriorating fiscal situation in Canada as well as flat to down oil prices have meant that the Loonie has been weaker than most against the US dollar in the last few days. There is focus on tomorrow’s BoC’s interest rate announcement, as well as the central bank’s Monetary Policy Report, the first since Tiff Macklem took the reins as governor. The BoC’s response to the recent fiscal announcements will be interesting to watch and could impact on the USD/CAD exchange rate.
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