The Canadian dollar weakened to an 11-week low against its U.S. counterpart on Wednesday as the Bank of Canada cut interest rates by an unusually large amount and the greenback added to its recent broad-based gains.

The markets anticipate an oversized 50bp cut, as economic growth has been weak, wage growth remains high and inflation is heading lower. Inflation dropped to 1.6% y/y in September, below expectations and moving back below the BoC’s target of 2% for the first time in three years.

Today’s top headlines Big grocers being cagey about their inflation-busting plans, but many are already in place Theo Argitis: Return to normal is proving elusive for Bank of Canada Wave of job cuts ‘probably just the beginning’ at Canadian banks Banks are taking it on the chin,

The Canadian dollar steadied against its U.S. counterpart on Friday but was on track for its third straight weekly decline, as oil prices fell and investors bet on an unusually large interest rate cut from the Bank of Canada.