Loonie has been sinking, in an overall trend kind of way, since Stephen Poloz took over at the Bank of Canada. With another policy statement on the way today, there are expectations that the Canadian dollar could go lower, particularly against the US dollar.
Loonie is higher against its European counterparts today, gaining ground as the picture in Europe is generally disappointing. However, the Canadian dollar is down against the US dollar today, losing ground on policy divergence expectations.
Stephen Poloz, who heads the Bank of Canada right now, seems to send the loonie lower every time he offers insight or a policy statement. Poloz has so far left the idea of a rate cut on the table, and that possibility continues to undercut the Canadian dollar. This is especially true against the US dollar, which always seems on the verge of a rate increase from the Federal Reserve.
For now, loonie is turning in a mixed performance, getting a little help from commodities, which are higher. Oil prices are up today, even if they are lower than they were earlier in the year.
At 13:10 GMT USD/CAD is up to 1.0759 from the open at 1.0760. EUR/CAD is down to 1.4557 from the open at 1.4596. GBP/CAD is down to 18.8438 from the open at 1.8443.
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