BOC Rate Statement Invigorates Loonie

4:05 AM // 0 comments // Nak Pya Yam // Category: Canadian Dollar

The Canadian dollar jumped today after Canada’s central bank held interest rates and signaled that it can resume its rates increases soon as economy improves.


The Bank of Canada maintained its key Overnight Rate at 1 percent and wrote in the statement:

To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed, some of the considerable monetary policy stimulus currently in place will be withdrawn. Such reduction would need to be carefully considered.

Tomorrow the bank will release the Monetary Policy report, followed by the press conference.

The advance of crude oil and the gains of stocks busted the Canadian currency further. August futures for delivery of crude oil rose 2.2 percent to $98.07 per barrel on NYMEX. The MSCI World Index of stocks of developed economies climbed 1.3 percent.

USD/CAD slumped from 0.9592 to 0.9507 as of 17:05 GMT today after reaching 0.9480, the lowest level since May 3. EUR/CAD dropped from 1.3540 to 1.3456 after posting the intraday low of 1.3438, the lowest price since March 11. CAD/JPY jumped from 82.32 to 82.96.

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