Today Bank of Canada announced it will keep its overnight interest rate unchanged at 1%. USD/CAD is currently traded down.
This decision was made as the Canadian inflation pressures are subsiding; during July the Canadian inflation rate reached an annual rate of 2.7%. BOC stated in its rate announcement it predicts the core inflation will continue to be contained throughout the year. The Bank is mostly concerned over the economic slowdown of Canada during the second quarter 2011. Despite this news, the US dollar continued to trade down throughout the day against the Canadian dollar, as it also depreciated against other currencies. Canada is also a leading exporter of crude oil and natural gas, mainly to the US. If the BOC will eventually change its exchange rate, it could have an effect also on major commodities prices.
Euros to USD is currently traded up at 1.4086 a 0.6323% increase as of 20:32*.
USD to Canadian dollar exchange rate is traded down at 0.9862 a 0.4354% decrease as of 20:32*.
Current Nymex crude oil price, short term futures (October 2011 delivery) is traded up by 3.85%, at $89.33 per barrel as of 18:48*.
Current gold price, short term futures (October 2011 delivery) is traded at $1,820.90 per t oz. a $52.4 decrease or 2.80%, as of 18:45*.
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