The Bank of Canada resisted pressure from investors by declining to signal it will soon follow global peers in easing monetary policy. Its reasoning was that stronger than expected growth, as well as inflation on target, means current levels of stimulus are where they should be. That’s despite the escalating trade war between China and the U.S. undermining global economic momentum. Some analysts had expected some form of dovish comments that there would be easing of rates in the futures, however that yet to emerge and this have them in the dark.
The Canadian dollar rallied to the USD on this news plus oil prices rose nearly 3% on Wednesday, boosted by a wider market pickup on positive news from China’s services sector, after three days of losses due to fears about a weakening global economy.
Currently Close Range
USDCAD 1.3250 1.3337 1.3239-1.3345
EURCAD 1.4601 1.4636 1.4599-1.4692
GBPCAD 1.6145 1.6121 1.6108-1.6280
CA: Merchandise Trade July $0.1B $-1.1B
US: International Trade July $-55.2B $-54.0B