OTTAWA (dpa-AFX) - The Canadian dollar strengthened against most major currencies in the European session on Wednesday, as the Bank of Canada (BoC) is expected to keep its policy rate unchanged, halting seven consecutive interest rate cuts.
Traders speculate that the central bank will keep its interest rate at 2.75 percent, ending seven straight rate reductions. The BoC Governor Tiff Macklem is scheduled to conduct a press conference after the monetary policy announcement.
The Bank of Canada is planning a halt in its easing cycle for April as trade policies need to be reevaluated due to growing global uncertainties, which are mostly caused by the White House's inconsistent stance on tariffs.
In the European trading today, the Canadian dollar rose to 1.3904 against the U.S. dollar, from an early low of 1.3960. The next possible upside target for the loonie is seen around the 1.37 region.
Against the yen and the euro, the loonie advanced to 102.73 and 1.5758 from an early 1-week low of 102.03 and a 5-day low of 1.5853, respectively. If the loonie extends its uptrend, it is likely to find resistance around 107.00 against the yen and 1.52 against the euro.
Looking ahead, U.S. mortgage approvals data, U.S. retail sales data for March, industrial and manufacturing productions for March, business inventories for February, U.S. NAHB housing market index for April and U.S. EIA crude oil data are slated for release in the New York session.
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