Forex - Canadian dollar hits session highs after Bank of Canada holds
Investing.com
Published Mar 04, 2015 10:17AM ET
Canadian dollar rises to session highs after Bank of Canada stands pat
Investing.com - The Canadian dollar rose to session highs against the U.S. dollar on Wednesday after the Bank of Canada kept interest rates on hold, after surprising markets with an unexpected rate cut in January.
USD/CAD was down 0.23% to 1.2470 from around 1.2518 ahead of the announcement.
The BoC said it was leaving its overnight cash rate unchanged at 0.75%, in line with expectations.
"Financial conditions in Canada have eased materially since January, in response to the Bank’s recent monetary policy action and to global financial developments," the bank said in a statement.
The BoC added that "the risks around the inflation profile are now more balanced and financial stability risks are evolving as expected in January."
In conclusion, policymakers judged that "the current degree of monetary policy stimulus is still appropriate."
At the same time, the Institute of Supply Management reported that service sector activity in the U.S. grew at a faster rate than expected in February, boosting expectations for higher interest rates.
The ISM non-manufacturing purchasing manager's index rose to 56.9 from 56.7 in January. Economists had expected the index to tick down to 56.5.
Earlier Wednesday, a report showed that the U.S. private sector added 212,000 jobs in February, falling short of expectations for an increase of 220,000. January’s figure was revised up to 250,000 from a previously reported 213,000.
Investors were turning their attention to Friday’s government nonfarm payrolls report for further indications on the future possible direction of monetary policy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last up 0.58% to an 11-year high of 95.98.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.