Loonie Bouncing as Bank of Canada Maintains

Steve Kanaval |

The Loonie is getting a nice pop back above .68 cents versus the $Dollar as the BOC maintains it's benchmark interest rate at .05%. The Bank said the risks to inflation are "roughly balanced", and the "current state of monetary policy is appropriate". Most analysts believe 4Q GDP likely stalled, to delay closing of output gap. The BOC cut GDP forecast to 1.4% from 2%.



As markets swoon and oil continues it downward spiral the Loonie is the bright spot along with positive earnings from Goldman Sachs. The markets are as volatile as we have seen them in many years as 2016 takes perilous turns.

Clearly then action by the Canadian bank to hold on rates makes traders wonder if the same will apply to the US Federal Reserve plan to raise rates in 2016.


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Emerging Growth

NXT-ID Inc.

Nxt-ID Inc provides products, solutions, and services that have a need for biometric secure access control. Its lines of business include mobile commerce; law enforcement and biometric access control applications…

Private Markets

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…