Currencies
Loonie’s Worst Run Since 2017 Fueled by Big Canadian Rate-Cut Bets
- Traders add to wagers on Bank of Canada easing after CPI data
- Canadian dollar set for 10th day of losses versus greenback
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The loonie is set for its worst run of losses in more than seven years after a soft report on Canadian consumer prices amped up bets that the Bank of Canada will ease borrowing costs by a quicker pace in the weeks ahead.
The Canadian dollar fell as much as 0.3% against the greenback to the day’s low around C$1.3839 after the release of consumer price index figures before paring the move later in the session. The report showed inflation in September growing at the smallest annual pace in more than three years and below the BOC’s 2% target. Canadian debt rallied across the curve.