The Loonie Gains Before BOC Rate conclusion

The Canadian dollar strengthened on 14th April  with the investors sentiment expecting the rate decision by the Bank of Canada on 16th April 2014.

The positive US retail sales data helped sentiments on the Canadian dollar. Moreover, the stronger data revealing an increase of 1.1% in the US retail revenues in March predicts a better sign for the U.S. economy, which in turn brings a good indication for Canadian exporters.

The Loonie moved up by 13 pips to 0.9124 against the greenback. With the latest data revealing more than expected results on gross domestic product, trade and employment, the Canadian dollar has moved up more than 1.3 % over the last 4 weeks. Investors look forward to the report by Statistics Canada on the consumer price inflation on 17th April.

Expectations about the unchanged benchmark lending rate of 1% by the Bank of Canada remains high. However, the statement about future policy, and upbeat Canadian economy by the policy makers will be closely watched. As per the revised estimates of the International Monetary Fund, the Canadian economy is expected to raise 2.3 % this year 2014.