Canada’s currency depreciated as the central bank prepared to issue a report tomorrow that may pave the way for so-called quantitative easing and U.S. stock- index futures dropped. “I don’t think the tone for the Canadian dollar will be great; if anything we’ll get a weaker tone ahead of the Monetary Policy Report,” said David Watt, senior currency strategist at RBC Capital Markets Inc., a unit of Canada’s biggest bank by assets. “It’s a potentially market-moving event.” The currency, known as the loonie, fell 0.8 percent to C$1.2452 per U.S. dollar at 8:50 a.m. in Toronto, from C$1.2357 yesterday. One Canadian dollar buys 80.31 U.S. cents. Bank of Canada Governor Mark Carney will provide guidelines tomorrow on the bank’s monetary policy, which may include printing money to buy debt assets and spur lending. Carney cut the key interest rate yesterday to 0.25 percent, the lowest on record. Futures on the Standard & Poor’s 500 Index dropped 1.2 percent. The MSCI World Index, a gauge of stocks in 23 developed nations, fell 0.3 percent. “There’s less reason to trade the Canadian dollar at the moment, so there’s no reason to buy it,” Watt said. “Stock markets are weak again on general risk aversion.” The loonie will fall to C$1.25 against the U.S. dollar this quarter before rebounding to C$1.20 by the end of the first quarter next year, according to the median forecast in a Bloomberg survey of 35 analysts and economists. Canada’s index of leading economic indicators fell 1.3 percent last month, more than expected, a Statistics Canada report showed. Housing and stock markets continued to weaken and new orders for manufacturers tumbled on lower demand for vehicles.

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