USD/CAD: Canadian Dollar Loses Ground Against Greenback, Markets Eye BoC Meeting and Trade Developments

The US dollar surged against the Canadian dollar in today’s trade ahead of the Bank of Canada rate decision on Wednesday. The Canadian dollar traded at 1.3294 against the greenback as of 3:05 p.m. in London.

In a move that came days after the US signed a law that backed Hong Kong autonomy, China responded with counter-measures that avoid trade. The Chinese Foreign Ministry said that the country would sanction right organizations and suspend US Navy ships to visit Hong Kong.

The Ministry’s spokeswoman Hua Chunying told reporters today that “China urges the U.S. side to correct its mistakes and stop any words and deeds that interfere in Hong Kong affairs and China’s internal politics.”

The move came just two weeks before the December 15 deadline when the US is poised to impose an additional 15% tariff on $156 billion of Chinese imports. Markets expect that those tariffs could be avoided if a phase-one deal gets signed.

Among economic reports, the US manufacturing sector experienced its fourth consecutive monthly contraction in November. The ISM manufacturing PMI came in at 48.1, while market expectations were set at 49.2. The New Orders Index registered 47.2 percent — a 1.9% fall from the October reading of 49.1.

In Canada, the BoC holds its latest monetary policy meeting for 2019 on Wednesday. It’s largely expected that the central bank will hold rates steady at 1.75%.

Technical levels show that the US dollar has been consolidating its November gains, trading in a well-defined range between mid 1.32s and lower 1.33s for the last two weeks. Any significant move above the November 20 high of 1.3327 looks limited for now.

The Bank of Canada monetary policy meeting could provide a much-needed catalyst to push the pair outside its two-week trading range. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.