BOC leaves policy unchanged – Canadian Dollar strengthens

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The Bank of Canada left the interest rate unchanged at 1% as widely expected.  BOC governor Stephen Poloz has not made any dramatic changes since taking the helm and entering the shoes of Mark Carney.

USD/CAD traded lower towards the publication, falling as low as 1.0478 before recapturing the 1.05 line before the event. The pair is now sliding below 1.05 once again.

The BOC doesn’t see inflation as a danger. Here is a segment from the statement:

Inflation in Canada remains subdued. With inflation expectations well-anchored, both core and total CPI inflation are expected to return slowly to 2 per cent as the output gap closes.

Earlier, Canada released a disappointing trade balance deficit: 0.9 billion instead of 0.3 expected. Other recent economic figures from Canada disappointed and caused worries.

Despite the rise in oil prices due to tensions around Syria, the Canadian dollar remains on the back foot. The next big level is 1.0660, which worked as resistance several times. On the downside, 1.0446 is important support.

For more, see the USD to CAD forecast.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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