Canadian dollar strengthens as market scales back bets
March 5, 2015 2:12 am
The Canadian dollar on Wednesday firmed snappily versus the US dollar following the Bank of Canada retained interest rates and implied it was satisfied with the market’s performance, as well as the economy’s response to its sudden rate cut in January.
The Canadian central bank kept benchmark overnight interest rate at 0.75%, saying inflation risks were more neutralized after it reduced rates by 25 basis points in January.
The loonie closed at C$1.2416 per greenback or 80.54 US cents, from Tuesday’s C$1.2490 or 80.06 US cents.
Following the BOC’s rate decision, the market reduced their rate cut expectations by around 20%, previously 60%.
The market may be saying “it may well be ‘one and done’… a lot of the conditions that are out there are not overly CAD supportive,” said Don Mikolich, Executive Director of Foreign Exchange Sales at CIBC World Markets.
In January, the BOC projected an economic growth of 1.5% in the first half of 2015. The Canadian central bank retained the same forecast on Wednesday.
The material has been provided by InstaForex Company – www.instaforex.com
The Canadian dollar on Wednesday firmed snappily versus the US dollar following the Bank of Canada retained interest rates and implied it was satisfied with the market’s performance, as well as the economy’s response to its sudden rate cut in January.
The Canadian central bank kept benchmark overnight interest rate at 0.75%, saying inflation risks were more neutralized after it reduced rates by 25 basis points in January.
The loonie closed at C$1.2416 per greenback or 80.54 US cents, from Tuesday’s C$1.2490 or 80.06 US cents.
Following the BOC’s rate decision, the market reduced their rate cut expectations by around 20%, previously 60%.
The market may be saying “it may well be ‘one and done’… a lot of the conditions that are out there are not overly CAD supportive,” said Don Mikolich, Executive Director of Foreign Exchange Sales at CIBC World Markets.
In January, the BOC projected an economic growth of 1.5% in the first half of 2015. The Canadian central bank retained the same forecast on Wednesday.
The material has been provided by InstaForex Company – www.instaforex.com
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