Canadian dollar recedes as markets shift focus on BOC, Fed

The Canadian dollar retreated Monday, as markets have turned their attention on the Bank of Canada and Federal Reserve following Greece closed an agreement with its international lenders. Bank of Canada is set to release its interest rate decision Wednesday, while prospects of Fed increasing rates in September were renewed. The loonie finished at 78.49 US cents from Friday's 78.87 US cents. The likelihood of BOC reducing rates is somewhat weighing on the loonie. “That explains some of the early weakness today,” said Mark Chandler, Head of Canadian Fixed Income and Currency Strategy at RBC Capital Markets. Last week, Statistics Canada reported unemployment rate stayed at 6.8% for the fifth consecutive month. The country also gained a net 32,800 jobs.

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