CAD Higher After BoC Says Economy Recovering

The Canadian dollar was slightly higher Wednesday after the Bank of Canada kept its key interest rate steady.

The loonie picked up 0.2 of a cent to 87.97 cents (U.S.) after the decision, which maintained the interest rate at 1 per cent as expected.

The central bank said the health of the domestic economy faces risks from declining oil prices and high household debt, though the Canadian economy shows signs of a broadening recovery.

CIBC World Markets economist Nick Exarhos said the comments indicates the BoC “still sees these pressures as largely temporary.”

“The statement did sound more sanguine on the U.S. economy as pertains to the lift it will provide to Canadian exports,” Exarhos wrote in a note.

Elsewhere, the January crude contract on the New York Mercantile Exchange is up 94 cents at $67.82 a barrel.

February bullion moved ahead $6.20 at $1,205.60 an ounce, while March copper is down 1.8 cents at $2.874 a pound.
via Globe and Mail

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

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