The Canadian dollar gained footing on the US dollar on Wednesday as the Federal Reserve signalled it would keep interest rates close to zero and slowed its stimulus efforts.
The Fed cut down its forecast for 2014 US growth but said the recuperation was on trace and it should be able to increase rates in 2015. It also trimmed the amount of bond buying it would make to hype growth to $35 billion per month.
“For Canada, the takeaway is likely that they still see a fairly robust outlook for U.S. economic growth and for Canada that is fairly positive,” said Camilla Sutton, Chief Currency Strategist at Scotiabank.
The loonie profited roughly a quarter of a cent post-Fed news, in spite of some initial volatile trading.
It closed the session trading at C$1.0850 to the greenback or 92.17 US cents, firmer than Tuesday’s C$1.0864 or 92.05 US cents.
Figures showing Canadian wholesale prices climbed twice as fast as anticipated in April had no remarkable impact before the Fed release.
The material has been provided by InstaForex Company – www.instaforex.com
The Canadian dollar gained footing on the US dollar on Wednesday as the Federal Reserve signalled it would keep interest rates close to zero and slowed its stimulus efforts.
The Fed cut down its forecast for 2014 US growth but said the recuperation was on trace and it should be able to increase rates in 2015. It also trimmed the amount of bond buying it would make to hype growth to $35 billion per month.
“For Canada, the takeaway is likely that they still see a fairly robust outlook for U.S. economic growth and for Canada that is fairly positive,” said Camilla Sutton, Chief Currency Strategist at Scotiabank.
The loonie profited roughly a quarter of a cent post-Fed news, in spite of some initial volatile trading.
It closed the session trading at C$1.0850 to the greenback or 92.17 US cents, firmer than Tuesday’s C$1.0864 or 92.05 US cents.
Figures showing Canadian wholesale prices climbed twice as fast as anticipated in April had no remarkable impact before the Fed release.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: