The Truth Behind The Bank Of Canada's Decision

Bank of Canada Governor Mark Carney has announced that interest rates would stay on hold for the time being. The decision wasn't a surprise to the market. Most, if not all, traders were expecting nothing more than an unchanged rate decision. But, it's the factors behind the ultimate announcement that is keeping those wanting to go long the Canadian dollar to remain on the sidelines. Interest rate speculation has supported the Canadian dollar against the greenback in the last several months. Global investors and traders looking for higher Canadian interest rates were betting that the Bank of Canada would react to beginning of the year growth forecasts that topped 3% – compared to US economic forecasts of about 1-2%. The sentiment helped to fuel as much as a 6% appreciation in the Loonie against the US dollar this year. Read the article here - http://forexalliance.com/2011/09/truth-bank-canadas-decision/