The Canadian dollar (CAD)is taking the biggest hit today as Bank of Canada policy-makers held rates steady at .25%. There has been a lot of speculation that Canada may need to raise rates sooner than later, causing the Loonie to return to its one year highs vs. the greenback. It’s off -1.5% vs. AUD, -1.63% vs. JPY, -1.79% vs. EUR, -2.05% vs. USD. As you can see, a bad day for the Loonie.
But a good day for Bank of Canada policy-makers. They have stepped up their own rhetoric to try to talk-down the strength of the Canadian dollar. They issued a warning that recent Canadian dollar strength will “more than offset” any recent signs of economic growth. As the Loonie has been approaching parity (1=1) with the US dollar, it appears that the BOC wants to halt that progress any way possible.
Will their efforts work? Stay tuned!
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