21 Jan 2015
USD/CAD soars after BoC cuts rate
FXStreet (Córdoba) - USD/CAD soared to fresh 6-year highs after the Bank of Canada decided to cut the main rate by 25 bps to 0.75%, the first reduction in the key rate since April 2009, in a move that caught markets off guard.
USD/CAD rallied more than 200 pips and reached its highest level since April 2009 at 1.2275 as the knee-jerk reaction. At time of writing, the pair is trading at the 1.2270 zone, up 1.32% on the day.
The BoC cited this decision as a response to the recent sharp drop in oil prices, which will be negative for growth and underlying inflation in Canada.
USD/CAD rallied more than 200 pips and reached its highest level since April 2009 at 1.2275 as the knee-jerk reaction. At time of writing, the pair is trading at the 1.2270 zone, up 1.32% on the day.
The BoC cited this decision as a response to the recent sharp drop in oil prices, which will be negative for growth and underlying inflation in Canada.