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Bank of Canada holds rate

Daily Currency Update

The Canadian dollar was flat against the US dollar on Wednesday after the Bank of Canada surprised markets by holding its lending rate at 0.25%. But policymakers say it won't stay there for much longer, according to a statement released by the central bank. Its updated economic outlook also says that inflation rates are likely to climb above 5% for the first quarter before moving down by end of the year. USDCAD was sitting at 1.26299 at the time of writing.

Key Movers

Demand for the US dollar moved up against a basket of currencies on Wednesday as investors waited for the latest monetary policy decision from the US Federal Open Market Committee. With inflation in the US at a 40-year high, action is needed to bring price rises under control, so markets are expecting to see US Federal Reserve Chair Jerome Powell confirm an end to its current quantitative easing program in the next couple of months and possibly signal that a rate hike could occur at the March 16th meeting. The US Dollar Index was up 0.20% at 96.15 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.4166 - 1.4275 ▼
  • GBP/CAD: 1.6966 - 1.7059 ▲
  • AUD/CAD: 0.9007 - 0.9045 ▲
  • USD/CAD: 1.2561 - 1.2643 ▼