2 Min Read
TORONTO, April 12 (Reuters) - The Canadian dollar was slightly weaker on Tuesday ahead of the Bank of Canada's interest rate decision, joining a sell-off in riskier assets including global stocks and commodities.
Global share prices slipped on Tuesday while commodity prices tumbled from record peaks after a Goldman Sachs report advised investors to lock in profits before oil and other commodity markets reverse. [MKTS/GLOB]
"In spite of the upcoming BoC rate announcement set for 9:00 this morning - which often dampens price moves in the days/hours leading up to it - the pair saw some volatility last night as it reacted in line with broader macro movers," Jack Spitz, managing director of foreign exchange at National Bank Financial, said in a note to clients.
"Assuming that no change in rates is a foregone conclusion - we will be looking for (Bank of Canada Governor Mark) Carney et al. to walk a very tight line between preparing the market for future rate hikes while trying not to exacerbate strength in the loonie."
The currency CAD=D4 was trading at C$0.9581 to the U.S. dollar, or $1.0437, compared with its close on Monday at C$0.9565 to the U.S. dollar, or $1.0455.
All 41 economists and strategists in a Reuters poll released on Thursday expected the Bank of Canada to keep its benchmark interest rate unchanged at 1 percent. [CA/POLL] [BOC-PRE] (Reporting by Jeffrey Hodgson, Editing by Chizu Nomiyama)