XPost: can.politics, bc.politics, mtl.general   
   From: puela@nyet.ca   
      
   And inspire more Canadian manufacturing for products sold to the U.S.   You go,   
   Ontario!   
   ____________________________________________________   
      
   CBC News Posted: Jan 20, 2015   
      
   Canadian dollar falls more than 1 cent ahead of Bank of Canada decision   
   Weak manufacturing data reduces value of Canadian dollar   
      
   The Canadian dollar fell more than a cent against the U.S. dollar this morning   
   — its lowest level since April 2009.   
      
   The loonie was trading at as low as 82.59 cents at 10:41 a.m. ET Tuesday,   
   before recovering slightly. As of 1:47 p.m. ET, the Canadian dollar was worth   
   82.71 cents compared to the U.S. dollar.   
      
   "The market is worried the Bank of Canada will hint at interest rate cuts   
   tomorrow," said Adam Button, a currency analyst with ForexLive.com.   
      
   "It's an ongoing story of weakness in oil and strength in the U.S. economy that   
   hasn't spilled across the border," added Button.   
      
   Data released by Statistics Canada on Tuesday morning showed November   
   manufacturing sales dropped 1.4 per cent, the second monthly decline in a row.   
   That weak data is one of the last economic indicators to cross Bank of Canada   
   governor Stephen Poloz's desk before the central bank makes an interest rate   
   announcement on Wednesday morning, says Button.   
      
   If the Bank of Canada hints that it might cut interest rates in the near   
   future, the Canadian dollar could slide further.   
      
   The central bank has kept its key rate at one per cent for 34 consecutive   
   decisions.   
      
   U.S. investment bank Morgan Stanley recently said it sees a one in three chance   
   that the Bank of Canada will cut interest rates before year's end.   
   Keeping an eye on the Bank of Canada   
      
   In a research note to clients, Scotiabank's chief foreign exchange strategist   
   Camilla Sutton laid out what currency traders will be looking for in the Bank   
   of Canada's next monetary policy report:   
      
   |    A shift towards "a slightly more dovish bias" in monetary policy —   
   meaning   
   that interest rates are likely to stay low or be cut further.   
   |    A cut to the bank's GDP forecasts, which haven't been revised to reflect   
   the most recent drop in oil prices."   
   |    Any reduction to the bank's inflation forecasts.   
   |    The bank's take on the impact of low oil prices, and how that impact might   
   be eased by a growing U.S. economy and a falling Canadian dollar that could   
   boost exports.   
   |    Other risks, including risks to the housing market, risks to the oil   
   industry, risks from high levels of household debt, and risks to global   
   economic growth.   
      
   The Bank of Canada's quarterly monetary policy report will be released at 10   
   a.m. ET on Wednesday.   
      
      
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            Loyalty to the country always.   Loyalty to the government when it   
   deserves it.    ~   Mark Twain   
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