The Canadian dollar continues to rally in the market after the decision of the Bank of Canada to leave rates unchanged. USD/CAD has fallen more than 150 pips since the statement.
The pair broke below Monday’s lows and bottomed at 1.3227, the lowest level since November 11. USD/CAD is extending the bearish correction that started back in January from multi-year highs that reached at 1.4690 (Jan 20). Since then it has now fallen 9.80%. Currently, it trades at 1.3240, down 1.30% for the day. The loonie is the best performer in the currency market on Wednesday.
Bank of Canada leaves rates unchanged
As expected the Bank of Canada decided to leave its target for the overnight rate at 0.5% and the statement was little changed from the previous meeting. According to analysts from ING Bank, the statement was not very dovish. “Given that the CAD had strengthened around 9% since January’s meeting, we are slightly surprised that we didn’t see a more pronounced dovish shift. Incidentally, we suspect that this is the BoC’s lower bound for CAD strength.”
(Market News Provided by FXstreet)
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