Thanks to some hawkish comments from the Bank of Canada, the Canadian dollar trampled all over the Greenback yesterday. USD/CAD dropped an impressive 96 pips to finish just a hair above the .9900 handle. So what exactly did the BOC say?
The BOC rocked the markets yesterday, as it said that its next move may just remove stimulus from the economy soon. Translation? It might be time to raise rates! Yowza!
In addition to that statement, the central bank noted that economic conditions were more stable, and it even raised its growth forecasts for 2012 from 2.0% to 2.4%! But of course, the BOC will be taking a cautious approach and will closely monitor both domestic and foreign economic developments.
For today, the minutes of the latest meeting will be released at 2:30 pm GMT. This will probably reiterate what was said yesterday, but you should still pay attention, as it could give us more insight as to when the BOC plans to raise rates.
"The only cable I watch is the pound baby."