The Canadian dollar had one of its best days of this month on April 15, and it has gained around two cents primarily because of the rebound in Canada’s oil prices. As reported, the central bank of Canada has held its target rate at 0.75 but changed their forecast and prediction for the growth of economy. It was said that the Canadian economy has flatlined somewhat in the first quarter of this year during the initial oil price shock, but the economic perspective is becoming brighter from lot of angles and many now see that the effect of the drop in Canadian oil prices was heavily front-loaded.
With Canadian coin trading hands at 81.39 cents, which is much better than the low of 79.58 it hit before the Bank of Canada released their updated interest decision of rate, analyst predictions are now undergoing adjustments. Around a quarter of the analysts polled by Bloomberg before this decision was made expected a cut that would have sent the Canadian coin lower due to the fact that it would make Canada less compelling for foreign investors. Since the central bank has decided to stand pat, many analysts have changed to a more positive outlook, at least from a currency standpoint.
Canadian oil prices were up as well, primarily because of new information from the United States that shows drillers started to scale down and have stopped a lot of new drilling due to the cratering prices.
The Canadian coin has burst forward in spite of the bleak tone of the latest statements from the Bank of Canada. It is now trading closer to the 86 cents that the bank has proclaimed to be the Canadian dollar’s normal level this year.