CAD Rises After Fed Minutes Show Willingness to Wait

The Canadian dollar was slightly higher Thursday as the greenback continued to weaken on indications from the U.S. Federal Reserve that it is in no hurry to hike interest rates.

The loonie edged up 0.02 of a cent to 90.08 cents US.

The Canadian currency jumped just over half a U.S. cent Wednesday after minutes from the U.S. Federal Reserve’s latest meeting showed that central bank officials agreed that they would begin raising interest rates only when measures of the economy’s health and inflation signalled the time was right.

They showed that the Fed has moved away from linking any rate change to any specific period.

The Fed also expressed concern about the slowing of the global economy and how a stronger U.S. dollar could impact American economic growth.

Worries about Europe grew Thursday amid another dose of glum economic data from the continent’s biggest economy.

via Kitco

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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