CAD Slides vs. USD Ahead of BoC Meeting, Stronger vs. EUR & JPY

The Canadian dollar slid today against its US counterpart, but managed to log gains versus the euro and the Japanese yen. This week should be important for the currency as the Canadian central bank conducts its monetary policy meeting on Wednesday.

The Bank of Canada will announce its monetary policy decision on December 4. It is expected that the bank will not make any changes to policy, but the wording of the statement should be fairly important. Investors are concerned that the statement may be rather dovish.

Fundamentals are not that bad for the Canadian currency though. Last week’s report showed that economic growth remained stable. The United States, the biggest trading partner of Canada, also demonstrate positive developments and this should help the Canadian economy.

USD/CAD was up from 1.0620 to 1.0640 as of 23:32 GMT today. Meanwhile, EUR/CAD slid from 1.4429 to 1.4406 and CAD/JPY advanced from 96.44 to 96.70.

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