Notes From Underground: Bank of Canada raises rates + robust Ivey PMI = Canadian Dollar gets a boost
By Yra
The BOC raised rates 25 basis points today as it attempts to remove the stimulus it provided while the world financial system was under extreme stress. The statement from the bank was mildly hawkish and because the market was unsure of the bank’s intensions, the LOONY went immediately bid. An hour later, the IVEY PMI was released and the data was much more robust than anticipated. All in all a very positive day for Canadian fundamentals.
As I always have said, follow the money as a means of anticipating future market direction. The large (and mostly media quiet) inflows into the loonie last week, as illustrated in my currency money flows about to go loonie commentary, was no accident.
Source: yrah53.wordpress.com
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