The Canadian dollar is trading near its lowest levels since April as the Bank of Canada’s interest rate statement and quarterly review balanced optimism about economic recovery with caution about risks. As expected, rates remained unchanged and bond purchases were cut further. But the Bank also acknowledged recent mixed economic data by lowering its 2021 growth forecast and moving up its forecast for 2022, essentially projecting a slower rebound than its previous report. The cautious tone as well as softer oil prices have caused the Canadian dollar to drop a penny since the release yesterday. At the moment, USD to CAD is at 1.256 (CAD to USD at 0.796). The equity markets are slightly off of recent record highs despite a strong start to earnings season as worries about Covid variants continue to percolate around the world.
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