Commentary indicated that the current interest rate would keep the economy on track and not bumping up against capacity. This small jump was somewhat short-lived in the morning hours, however, the currency pair weakened for the rest of the day with the specter of higher near term rates. Oil took a hit after yesterday’s gains with the release of continuing growth in US stockpiles of gasoline. This sent the USD/CAD pair down to 1.1219 right before noon. The pair has continued to fluctuate around 1.1200 through the early afternoon.
Canadian bonds showed little reaction
to the rate announcement but did see a drop in price after the release of the
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