CAD Drops after BoC Calls Current Rate Appropiate

The Canadian dollar weakened against its U.S. counterpart after the Bank of Canada indicated it won’t raise interest rates anytime soon.
Canada’s currency, nicknamed the loonie for the image of the aquatic bird on the C$1 coin, fell versus the majority of its 16 most-traded peers as BOC Governor Mark Carney softened language about tighter policy for the second meeting in a row, saying inflation will “remain low in the near term‘‘ in an economy with ‘‘material excess capacity.’’ The central bank kept its benchmark rate at 1 percent as gross domestic product and consumer prices have risen less than expected.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza