DailyFX.com -

Talking Points

  • Bank of Canada Keeps Headline Rate Unchanged at 1.0%
  • US Dollar Rises vs the Loonie Following the Release
  • Bank of Canada Commentary

The Canadian Dollar extended its losses against its major peers as the Bank of Canada (BoC) decided to leave its key rate unchanged at 1.0 percent. However, it was the BoC’s policy announcement that may have driven the loonie losses.

“Temporary Canada CPI rise isn’t tied to broad economy,” said the Bank of Canada in its policy announcement, “[we] are neutral about the next policy rate move.” They also mentioned that Canada’s economy will not hit capacity until mid-2016. As a result, the BOC has lowered their 2014 growth outlook to 2.2 percent from 2.3 percent, and their 2015 growth outlook to 2.4 percent from 2.5 percent.

Story: Canadian Labor Market Disappoints in June, USD/CAD Rips Higher

Currency Analyst Christopher Vecchio posted the following USD/CAD chart to the DailyFX Real Time News feed after the rate decision, which shows the pair running into trend line resistance from the March highs.

USD/CAD Trades into March High Trendline as BoC Talks Down Economy

USD/CAD Trades into March High Trendline as BoC Talks Down Economy

USD/CAD 5-Minute Chart using FXCM Marketscope 2.0

-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to dmaycotte@FXCM.com.

Want to trade with proprietary strategies developed by FXCM? Find out how with Mirror Trader.

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Hot Definitions
  1. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  2. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  3. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  4. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  5. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  6. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!