FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, suggests that the Canadian dollar strength has been dampened by weakness in the price of crude oil and the risk of a more dovish policy signal from the BoC when they meet today. Key Quotes “The Canadian dollar has strengthened modestly following the formation of a majority Liberal government in Canada which has pledged to run looser fiscal policy. The weakening outlook for external demand may prompt the BoC to signal a more gradual path for monetary tightening in the coming years by pushing back the projected timing of reaching full capacity beyond the 1H 2017 and delaying the return of inflation to their target.” “Economic growth in Canada has rebounded more strongly than expected in Q3 but that will likely be outweighed by concerns over weakening external demand. However, it appears less likely now that further easing will be delivered especially with fiscal policy set to be looser as well. In these circumstances, today’s BoC meeting may pose some modest downside risk for the Canadian dollar.” For more information, read our latest forex news.