Canadian Dollar Rises Ahead of BoC Monetary Policy Meeting

The Canadian dollar rose yesterday and is keeping its gains today as analysts predict that Canada’s central bank will keep its main interest rate unchanged at today’s monetary policy meeting.
The Bank of Canada is expected to maintain its key overnight rate at 1 percent as the current state of Canada’s economy looks good enough to keep the rate at the current level. Certainly, there are some negative data, like the drop of building permits by 12.3 percent. On the other hand, Purchasing Managers’ Index advanced from 64.1 in January to 66.5 in February. Economists predict that a report later this week will show that Canada’s employment grew with faster pace.
Overseas, news was also positive for the Canadian currency. The US employment report showed a robust growth, while 58 percent of private bondholders agreed to participate in Greek debt swap. Overall, yesterday’s trading session was good for currencies with higher yield and Forex traders entered today’s session with elevated mood.
USD/CAD traded at 0.9981 as of 00:58 GMT today after its slipped from 1.0013 to 0.9975 yesterday. EUR/CAD was down from 1.3129 to 1.3115 and remained near this level today. CAD/JPY advanced from 80.76 to 81.24 on the previous trading session and continued to rally at today’s session, rising to 81.40.

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