CAD Rallies as Poloz Reiterates Interest Rate Hike Probable

The Canadian dollar rallied versus its US counterpart today as the new chief of the central bank said that an interest rate hike is probable sometime in the future. The currency retreated against some other majors, including the euro.
Stephen Poloz replaced Mark Carney, who is going to lead the Bank of England, as Bank of Canada Governor. Poloz reiterated in his first comments Carney’s opinion that higher borrowing costs may become prudent as the economy recovers. The loonie rallied against the greenback on the outlook for higher rates, but was unable to outperform the euro, which was bolstered by the European Central Bank monetary decision.
USD/CAD was down from 1.0342 to 1.0277 as of 22:20 GMT today, while its daily low was at 1.0196. Meanwhile, EUR/CAD rallied from 1.3539 to 1.3602 and its intraday maximum of 1.3635 was strongest since February 1.

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