The Canadian dollar was yesterday’s main loser, tumbling after the BoC altered its language on interest rates, stressing the uncertainty surrounding the timing of future hikes. As for today, the central bank torch will be passed to the ECB. Investors may be eager to see whether this Bank will also make changes to its rate guidance and whether there will be any announcement on new TLTROs.
CAD Falls as BoC highlights Uncertainty over Hike Timing
The US dollar corrected lower against all but one of the other G10 currencies yesterday. It gained only against CAD, which tumbled after the BoC rate decision. The currencies that gained the most against their US counterpart were GBP, NZD and SEK in that order.
As we already noted, the big loser was the Loonie and responsible for that was the Bank of Canada. The Bank kept interest rates unchanged at +1.75% as was widely anticipated, but the...
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