The Bank of Canada has left their interest rates unchanged at 1%.
The USD/CAD had been edging higher all day, awaiting the announcement has continued that move.
There are concerns that due to “persistent” supply bottlenecks, Canadian heavy crude already is trading at a discount based on global prices. A change in commodity prices could sharply reduce export earnings and investment expectations domestically.
This was the last meeting for Governor Carney before leaving the Bank of Canada for the Bank of England. The central bank expects global economic activity to grow modestly in 2013 and then strengthen in the next two years.
They also stated they expect growth in Canada to pick up to about 2.5% in the second half of 2013. Growth for the entire year is only expected to be 1.5% for 2013, but growth in 2014 and 2015 is projected to grow by 2.8% ad 2.7% respectively.
As for the currency itself, USD/CAD resistance is at 1.0280, then 1.0305. Support for USD/CAD is now at 1.0245, then 1.0220.
Here s another notable quote from the statement: the date for the economy to reach full capacity was pushed back to mid-2015 from H2 2014Get the 5 most predictable currency pairs