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

MGX Minerals Inc.

MGX Minerals is a diversified Canadian mining company listed on the Canadian Securities Exchange. MGX is engaged in the acquisition and development of industrial mineral deposits in western Canada that…

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…

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…