The Bank of Canada left the interest rate unchanged and more importantly – left the forecast unchanged. Without an upcoming rate hike, the Canadian dollar loses ground to the greenback. Mark Carney likes clear messages. In the headline provided with the rate statement he “reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010”. This unchanged policy comes on top of improving conditions, and is a disappointment. USD/CAD rose from 1.03 to 1.0340 after the decision, but still remains in the range mentioned in the Canadian dollar forecast. After stronger inflation numbers and improving employment conditions, Carney probably wanted to cool down the Canadian dollar. The strength of the loonie weighs on the Canadian dollar, by not announcing a shift in policy. Is preparing a surprise rate hike? Probably not. His policy is rather transparent and clear. This stands out as Bernanke usually offers confused messages. USD/CAD is still in the 1.02-1.04 range. Another thing that pushes the greenback higher is American TIC Long-Term Purchases which posted a huge surprise: 126.8 billion, compared to about 30 billion. Earlier this week, Canadian Foreign Securities Purchases showed a rise to 10.5 billion, almost double the early expectations to remain stable. This good figure shows that foreigners put their trust in Canada’s economy. USD/CAD went lower and stopped at 1.0250. Hours before the rate decision, USD/CAD went back up, as the dollar made gains across the board. This upwards move eased as also the Canadian Leading Index surprised with a strong rise of 1.5%, more than this 1.1% that was predicted. This came 30 minutes before the rate decision. Want to see what other traders are doing in real accounts? Check out Currensee. It’s free. Yohay Elam Yohay Elam 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. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Forex Daily Outlook – January 20th 2010 Yohay Elam 13 years The Bank of Canada left the interest rate unchanged and more importantly - left the forecast unchanged. Without an upcoming rate hike, the Canadian dollar loses ground to the greenback. Mark Carney likes clear messages. In the headline provided with the rate statement he "reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010". This unchanged policy comes on top of improving conditions, and is a disappointment. USD/CAD rose from 1.03 to 1.0340 after the decision, but still remains in the range mentioned in the Canadian dollar forecast. After stronger inflation numbers and… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.