The loonie started the week on a negative tone. The Canadian currency is lower versus the USD as members of the U.S. Federal Reserve even when they used dovish rhetoric were all supportive of a rate hike in December.
The Canadian dollar traded below 75 cents US Friday, for the first time since March. The almost one-cent drop comes partly because of signals from the Bank of Canada - although the central bank is likely fine with a lower loonie.
TORONTO (Reuters) - The Canadian dollar weakened to a fresh seven-month low against its U.S. counterpart on Monday, before rallying after the Bank of Canada's official close as comments by the central bank's governor tempered expectations for interest ...
“Positioning in [Canadian dollar] futures were aggressively pared last week (and are now net short), while risk reversals clearly show an inherent upside bias in the three-month bucket (likely reflecting some of the Trump and Fed premium),” he said.