These are stories Report on Business followed this week.
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No one's saying he's definitely going to do it, but markets are speculating that Stephen Poloz may well follow up his surprise rate cut with another one.
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Which puts a whole new spin on trying to forecast the fortunes of the Canadian dollar.
Mr. Poloz and his Bank of Canada colleagues surprised the markets in January by cutting their benchmark overnight rate by one-quarter of a percentage point, to 0.75 per cent, taking out what the central bank governor called an insurance policy amid the oil slump.
That sent the currency into a tailspin on that day alone, though it had been falling, and it continued to fall further afterward, pulled lower by the collapse in oil prices and the "dovish" nature of the central bank.
That dovishness is all the more noteworthy given that the central bank's U.S. counterpart, the Federal Reserve, is heading toward a rate hike, possibly in June.
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Here's what Camilla Sutton, the chief currency strategist at Bank of Nova Scotia, would expect to see if Mr. Poloz grew ultra-easy and indeed cut again in March, and why:
A second cut would mean that oil prices are even lower, because the central bank would otherwise not feel the need to act.
Coupled with that is the fact that markets are now pricing in a 28-per-cent possibility of a March move, and a 75-per-cent chance of action within six months.
That means they're not overwhelmingly counting on a cut at the central bank's next meeting. Which, in turn, means another cut would be another surprise and, thus, a "significant reaction" for the Canadian dollar.
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Such a scenario could drive the loonie down to the 75-cent range, Ms. Sutton said.
"The central bank dynamic has been the biggest surprise that has exacerbated the rally we have been looking for in USD/CAD," added senior currency strategist Greg Moore of RBC Dominion Securities, referring to the rally in the U.S. dollar versus the loonie, or, looked at the other way, the slump in the Canadian currency against the greenback.
"While we anticipated that the BoC would adopt a more dovish outlook on oil prices and the energy sector landscape, a rate cut was entirely off of our radar," he added in a report that projects the loonie will sink to 75 cents by the middle of the year, before regaining ground.
"With the surprise rate cut so clearly linked to oil, monetary policy expectations for the rest of the year should be reliant on the direction of oil and the energy landscape more than ever."
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The longer that West Texas Intermediate crude remains below $55 a barrel, then the "greater pricing will be for another cut," Mr. Moore added, referring to the U.S. oil benchmark.
So far this year, the loonie has touched a low of 78.22 cents, which it hit on Friday, having sat above 94 cents a year ago.
Indeed, noted chief economist Douglas Porter of Bank of Montreal, January's 9-per-cent plunge was historic.
"To put that into perspective, there has only been one year when the Canadian dollar has dropped by more than 9 per cent (2008), let alone a month," he said.
But Ms. Sutton, too, put an interesting perspective on it, citing the fact that the Canadian dollar has averaged 80.77 cents over the past 35 years, and we're not far off that mark.
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- Video: What's the difference between the loonie and the Titanic?
- Richard Blackwell: Loonie tumbles more than half a cent as U.S. dollar surges
- From loonie to 'swoonie': Canadian dollar now worth just about 80¢
- Scott Barlow's Inside the Market (for subscribers): Goldman Sachs forecasts 71-cent loonie
- The speculators, the loonie and the big score
- Barrie McKenna: Poloz says cut to key rate a hedge against plunging oil prices
The week's top business videos
- The Bottom Line: What's the difference between the loonie and the Titanic?
- Susan Krashinsky: Three Super Bowl ads that push the limits and bend the rules
- Carrick Talks Money: Four keys to a happy and healthy retirement
- Shane Dingman: Hey, amateur pilot, it's time to talk about droning problem
- Susan Krashinsky: Why Canadians can't see some of the most buzzworthy Super Bowl ads (and how to get around it)
The week in Business Briefing
- Why it's going to at least feel like a recession in Alberta this year
- Why would an alleged Russian spy want to know about ETFs?
- Canada the 20th 'least miserable' country in world ranking
- Loonie sinks ever deeper: 'There will be consequences'
- 'There will be blood ' in Canada from oil price collapse, JPMorgan warns
The week in Streetwise (for subscribers)
- Tim Kiladze: The burning question on Bay Street: Did RBC overpay?
- Jeffrey Jones: If energy bonuses drop, will brokerages face an exodus?
- Adrian Myers: Big fights make headlines, but small ones make law
- Jacquie McNish: BlackBerry's top investors favour restructuring over M&A
- Jacqueline Nelson: Canaccord Genuity's new Dubai office targets mid-market deals
The week in ROB Insight (for subscribers)
- Christopher Ragan: Balancing the budget would be bad timing by Ottawa
- Glen Hodgson: Oil price collapse creating small winners, bigger losers
- Carl Mortished: There's only one feasible solution to the Greek drama
- Kevin Carmichael: Fed shouldn't be fazed by reaction to latest statement
- Todd Hirsch, Greg Kiessling: Let's call it what it is: A fee to emit carbon
The week's top news
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- Carrie Tait: Cenovus cuts spending, shelves projects as oil continues to slide
- David Parkinson: Fed stays on target for June rate hike despite turmoil in global markets
- Eric Reguly: Greek banks bear brunt of Syriza anti-austerity pain as investors flee
- James Bradshaw and Susan Krashinsky: CRTC opens door for U.S. Super Bowl ads to air on Canadian TV
- Barrie McKenna: Ottawa working to modify strict anti-corruption rules
The week's must-reads
- Susan Krashinsky: New campaign brings out the wild side of RVing
- Nathan VanderKlippe: China accuses Alibaba of being hub of illegal activity
- Tim Kiladze and Tamsin McMahon: Bank's prime rate cut a compromise on public image, consumer duty
- Janet McFarland: Renaissance man Joseph Rotman was a patron of education
- Luke Kawa: Strong U.S. dollar drags down earnings of key multinational firms