The outlook for the Canadian dollar improved after Canada’s central bank raised the interest rates and issued the statement, which was much more hawkish than expected. Still, the uncertainty about the global economic growth will likely limit the potential loonie’s gains.
The Bank of Canada decided to raise its target for the overnight rate by
The Canadian dollar is also very influenced by the factors outside Canada, which for now look positive for the currency. Gains of crude oil and the global stocks made the
The USD/CAD currency pair may swing between 1.0355 and 1.0675, but generally it won’t likely move away from current level in any direction (but in the next week can fall somewhat). The Canadian dollar entered uptrend against the euro and may be rising for some time but the rally will likely stop before the loonie will reach C$1.30 per euro.
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- September 9, 2010
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