Canadian Dollar Marks 3rd Day of Gains

The Canadian dollar rose for the third straight day, gaining 0.6 percent to $1.0353 against the US dollar by 7:20 AM in Toronto. It is expected that even though the economy is recovering faster than predicted, the Bank of Canada will maintain its record-low 0.25 percent overnight lending rate when it releases its interest rate statement later this morning.

“The Bank of Canada will almost certainly acknowledge the strength in recent economic activity and domestic demand, but at the same time, it will also likely reiterate what it sees as the downside risks to growth,” wrote Jacqui Douglas, a currency strategist in Toronto at Toronto-Dominion Bank, in a note to clients yesterday. “Markets may be expecting to see more substantial changes to the statement, but we think that they’ll be disappointed.”

Source: Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.