Foreign exchange update for February 25
by Johny Nusbaum, Foreign Currency Trader, Aloris Mercantile Corp.
The Canadian dollar has gained 2 cents ahead of the March 4 interest rate review
TORONTO—The Canadian dollar has gained 2 cents from yesterday’s lows after the Bank of Canada governor, Stephen Poloz, strongly hinted that a further cut in the interest at the next Bank of Canada meeting, scheduled for March 4, 2015, is unlikely.
He specifically said that the January interest rate cut “buys us some time to see how the economy actually responds”.
While a rate cut in March is not out of the question, especially seeing as how Mr. Poloz has the penchant for surprises, it is now much more likely that the rate cut will be postponed until the April meeting.
