The Canadian dollar traded with the rest of the commodity dollars on Wednesday, as the currency lost 2.6 percent against the greenback. The Canadian dollar could see a further pickup in volatility on Thursday at 9:00 ET as the Bank of Canada is expected to leave rates unchanged at 0.25 percent, following their surprise 25 basis point reduction on April 21. During that April meeting, the BOC made it clear that they intended to leave rates at that level though June 2010, but a bombshell came from the BOC’s Monetary Policy Report a few days later, as they left the door open to quantitative easing (QE) and credit easing if nominal interest rates start to fall below zero. Indeed, the Bank stated that while they could cut rates to zero in theory, it would ultimately “eliminate the incentive for lenders and borrowers to transact in markets, especially in the repo market.” As it stands, core CPI has held at a fairly robust 1.8 percent in April, suggesting that inflation remains high enough to suggest that QE will not be on the way anytime soon.