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Forex: USD/CAD soars after BoC

The Canadian dollar weakened sharply versus the greenback after the BoC decided to keep its monetary policy unchanged, with the main rate at 1%, but sounded more dovish than expected: "the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required".

USD/CAD jumped and rose over 50 pips after the decision and reached a high of 1.0335, but stalled just ahead of its 2013 high of 1.0341 scored on March 1. At time of writing, USD/CAD is quoting around 1.0325, still up 0.6% on the day.

Contributing to CAD weakness, separated data showed the Canadian Ivey PMI stood below expectations in February.

Canada: Ivey PMI drops to 51.1 in February

A disappointing figure was released today, with Canada Ivey PMI falling from 58.9 to 51.1 in February. Analysts were expecting data to ease to 57.5.
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