Traders Gird for Weaker Canadian Dollar as First Rate Cut Eyed
- Case for cut bolstered following weaker-than-expected GDP data
- Traders bet loonie will weaken even in a no-cut scenario
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Traders are bracing for weakness in the Canadian dollar amid wagers that local policymakers will likely reduce interest rates before their peers at the Federal Reserve.
That rate differential — which some on Wall Street expect to widen when the Bank of Canada meets on Wednesday — is already fueling one of the worst performances among Group-of-10 currencies this quarter. The loonie has been the second-weakest performer in the Group of 10 since the end of March, trailing only the Japanese yen.