FX.co ★ The fundamental analysis of the currency pair USD/CAD

As expected, the Bank of Canada left the interest rate at 0.25%. According Bloomberg, all of 12 respondent economists predicted that this rate would maintain at the same level. The Canadian dollar grew up for 60 points after the release of news. Moreover, market participants confirm that the Bank of Canada can accept provisional measures in order to stop negative risks for economic growth and inflation because of national currency strengthening. Probably, the Bank of Canada will not confine itself to show discontent concerning the decline of the pair U. S. dollar/Canadian dollar to the level of 1,0960. The support is still considered to be one of conventional political methods, and the Central Bank can suggest that it is still looked into it as one of the variants, since an overdue strengthening emerges the macroeconomic risks for economic recovery. As a result of this the growth of the Canadian dollar may turn out to be at risk.

With respect,

Analyst: Vladimir Donin.