CANADA FX-C$ surges to 3-month high after central bank's more bullish signal

Wed Apr 15, 2015 5:01pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Updates throughout with details, comment from USForex, market reaction)

* Canadian dollar ends at C$1.2300, or 81.30 U.S. cents

* C$ hits strongest level since January rate cut

* C$ has biggest one-day gain since March 18

* Bond prices lower across the maturity curve

By Solarina Ho

TORONTO, April 15 (Reuters) - The Canadian dollar powered higher on Wednesday after the Bank of Canada talked down the probability of another interest rate cut, with the currency hitting its strongest level against the greenback since the bank's surprise rate cut in January.

Bank Governor Stephen Poloz reiterated his view that the impact of the oil-price crash on Canada's oil-heavy economy will have been most severe in the first part of the year and that the bank's 25-basis-point January cut, as well as more robust U.S. demand, will help non-energy exports and labor markets strengthen.

"Probably the ... most positive (comment) was the fact that some of the economic weakness we've seen is front-loaded and that they are expecting the economy to be on a pretty good growth trajectory for the remainder of the year," said Lennon Sweeting, currency strategist at USForex.   Continued...