USD CAD Driven Lower By Demand for Higher Risk Commodities and Equities

Demand for higher risk assets such as crude oil and equities is helping to boost the Canadian Dollar.

Demand for higher risk assets such as crude oil and equities is helping to boost the Canadian Dollar. This is occurring despite tomorrow’s Bank of Canada meeting. Traders expect the BoC to leave interest rates unchanged at this meeting but may discuss changing interest rates sooner than expected if the economy begins to heat up. Some investors feel the current rally could be curtailed if the BoC expresses concerns about the rapid rise in the Canadian Dollar and its possible negative effect on Canadian economic expansion.