The Canadian dollar was ebbing and flowing against its southerly rival as the trade week began as the U.S. Federal Reserve prepared to meet for two days early this week to discuss monetary stimulus policy, according to Bloomberg.
The loonie lost value against the majority of its major counterparts as the Federal Open Market Committee of the Fed is scheduled to meet on Tuesday and Wednesday. The Bank of Canada, under the direction of Governor Stephen Poloz, is believed to be pursuing a more dovish policy, which avails easier money.
"I think that investors have started to warm up on the bearish Canadian theme encouraged by Poloz, a large consumer debt overhang, limitations in energy exports and the deflationary pains associated with being a satellite of what should eventually be a rising USD," Sébastien Galy with Société Générale told The Globe and Mail on Monday.
The Canadian dollar was moderately changed on Monday at $1.0583 against the world's reserve currency.
The loonie is plagued by wobbly confidence amongst investor and analysts, The Globe and Mail reports. That further questions the loonie's already-weak outlook.
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