Wednesday reports on the trade balance of two North American countries did not have any impact on USD/CAD. Some hours later the Bank of Canada announced its interest rate decision causing a solid drop in the currency pair, where the Greenback fell initially against the Loonie by 206 base points or 1.69% to be seen trading in the 1.22 area.
Statistics Canada reported that the country's trade balance narrowed more than anticipated to 3.0B over the course of July. Data were released late to affect the BoC rate address, though it raised the Overnight Rate unexpectedly to 1.00% from 0.75%. The Central Bank stated that the next moves would be driven by future economic data and developments in financial markets.
| Historical Data Table: BoC Overnight Rate | |||||
| Date | 01.03.2017 | 12.04.2017 | 24.05.2017 | 12.07.2017 | 06.09.2017 |
| Actual | 0.50% | 0.50% | 0.50% | 0.75% | 1.00% |
| Forecast | 0.50% | 0.50% | 0.50% | 0.75% | 0.75% |
| Initial Reaction on Main Pairs | |||||
| Open Price | Close Price | % Change | |||
| AUD/CAD | 0.98876 | 0.97399 | -1.49% | ||
| CAD/CHF | 0.77085 | 0.78345 | 1.63% | ||
| EUR/CAD | 1.48002 | 1.4555 | -1.66% | ||
| USD/CAD | 1.24087 | 1.22023 | -1.66% | ||