Canadian dollar is making up some lost ground today, gaining against the US dollar. After disappointing data at the end of last week, the loonie headed lower, but today the Canadian currency is making something of a turnaround. Many Forex traders are looking forward to the interest rate announcement expected from the Bank of Canada on Wednesday.
The focus of Wednesday’s Bank of Canada announcement is likely to be the economic commentary that comes along with the decision. This is because the BOC has kept interest rates at 1 per cent for close to four years. Forex traders will be looking for indications that the central bank is ready to take steps in one direction or another, based on an assessment of economic strength.
Some expect to see easing measures in the future, since economic data — particularly employment data — has been lackluster. Last week’s disappointing data prompted loonie losses. Many of those losses are being overcome to some degree today, though, as Forex traders take profits and then are likely to adopt a wait and see stance until Wednesday.
At 14:22 GMT USD/CAD is lower, dropping to 1.0729 from the open at 1.0732. EUR/CAD is higher, up to 138.3795 from the open at 137.8550. GBP/CAD is down to 1.8332 from the open at 1.8383.
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