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The Canadian dollar fell below 70 US cents this week, dropping to a four-year low of 69 cents before recovering slightly. The decline reflected broad U.S. dollar strength, risk aversion and collapsing energy prices.
The Bank of Canada cut its overnight rate to the effective lower bound and launched its first quantitative easing program.
The currency's weakness is driven by a stronger U.S. dollar and lower oil, which raises the cost of imported feed inputs for Canadian buyers. Further Bank of Canada easing could push the loonie lower.
rbc.comJosh NyeMar 27, 2020Not enough comparable past events yet for a historical read.
After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
