Canadian Dollar Falls as Focus Shifts to Inflation Data

 
   By David George-Cosh 
 

        TORONTO--The Canadian dollar was weaker against the U.S. dollar Thursday as traders continued to take a bearish view on the currency in wake of the Bank of Canada's decision to loosen monetary policy.
        The U.S. dollar was recently at C$1.2966, from C$1.2728 late Wednesday, according to data provider CQG.
        The Canadian dollar continued to trade at six-year lows versus its U.S. counterpart. With the Bank of Canada cutting its overnight policy rate 25 basis points to 0.5%, analysts expect the loonie to continue falling further in the coming days.
        "The loonie is flying through the perfect storm and is bound to lose some feathers," said National Bank Financial.
        "The oil shock was more brutal that first thought and there is little relief in sight for producers in light of further U.S. dollar strength and the Iranian nuclear deal, both of which are negative for crude prices."
        Investors will now look to Canadian inflation figures for June for some further guidance on the loonie's next move. Canada's consumer price index is expected to rise by an annualized 1.0% in June and 2.2% for the core figure.
        TD Securities notes that if inflation figures miss expectations, that could prompt the Canadian dollar to fall slightly against the greenback.
        Write to David George-Cosh at david.george-cosh@wsj.com
        (END) Dow Jones Newswires

        July 16, 2015 16:39 ET (20:39 GMT)

#FX
#Forex
#SaleForex
#CanadianDollarFalls
#FocusShift
#InflationData