Traders are betting the Canadian dollar fell too far, too fast in its worst start to a year in more than four decades, as rising commodities prices and a forecast budget surplus damp speculation for interest-rate cuts.
The euro retreated from an eight- month high versus the dollar before the European Central Bank meets today for the first time since President Mario Draghi said he’s ready to inject cash into the banking system.
The dollar slumped to a 15-year low against the yen after a private report showed U.S. companies unexpectedly cut jobs last month, fueling speculation the Federal Reserve will buy U.S. assets to spur a slowing economy.
The dollar retreated from a three- week high versus the yen after encountering so-called technical resistance and as the short-term debt deal passed by U.S. Congress failed to end political uncertainty.
Canada’s dollar may gain to the strongest level versus its U.S. counterpart since 2007 amid expectations the Canadian central bank will raise interest rates before the Federal Reserve, according to Credit Suisse Group AG.