The Canadian dollar snapped back from six-year troughs versus the US dollar Wednesday, its largest one-day move since September 2011, as the Federal Reserve hinted a more cautious outlook for economic growth and reduced its projected interest rate direction.
The US central bank dropped the term “patient” from its statements regarding rate hikes although its more dovish prediction made the increase less possible.
Fed’s economic forecast is not necessarily negative, but is not somewhat as upbeat as we were seeing back in December’s meeting,” said Lennon Sweeting, Currency Strategist at USForex.
The loonie was 2% higher at C$1.2570 per greenback or 79.55 US cents, from Tuesday’s C$1.2785 or 78.22 US cents.
On other news, the Canadian wholesale sales for January marked the biggest decline in six years.
The material has been provided by InstaForex Company – www.instaforex.com