The Loonie in the Penalty Box
The Bank of Canada made no change to its key interest rate this morning, and that is exactly as the markets expected. What we didn't anticipate was the central bank's change in tone toward interest rates going forward, one which resulted in a sudden plunge in the Canadian dollar. What does this mean for the currency going forward, and how can we profit from it?
The maintenance of the 1% target rate came as no surprise, but the central bank cut growth expectations for 2013 down to 2% from 2.3%. Mark Carney, the outgoing head of the Bank of Canada (and incoming chief of the Bank of England), surprised markets when he deviated from his previously hawkish stance because of softening growth and tepid inflation....388 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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