Connect with us

Hi, what are you looking for?


Canadian Dollar Surges as Bank of Canada Trims Bond Buys

The Bank of Canada stated that they would trim their monthly bond purchases, causing the Canadian dollar to sharply surge and a faster path to an eventual rise in interest rates. The U.S dollar fell 1.1% to fetch 1.2481 Canadian dollars. This year, the U.S currency is down 1.9% compared to the Canadian currency.

The Bank of Canada made a statement on April 21, 2021, following a policy meeting. They said “this adjustment to the amount of incremental stimulus being added each week reflects the progress made in the economic recovery.”

Bank of Canada will trim its weekly net bond purchases

The BOC left interest rates unchanged, however, would trim its weekly net bond purchases from C$4 billion ($3.2 billion) to C$3 billion effective April 26, 2021.

Canada’s 10-year government bond went up by 6 basis points, to 1.56%, as yields rise as bond prices fall. In comparison, the United States saw little movement.

Bank of Canada left interest rates unchanged
The Bank of Canada left interest rates unchanged, however, would trim its weekly net bond purchases from C$4 billion ($3.2 billion) to C$3 billion effective April 26, 2021

Michael Hewson, chief market analyst at CMC Markets, commented that “the central bank’s “slight tightening, if you can call it that, is entirely justified by recent data which shows the jobs market is recovering with the economy set to grow by upwards of 5% over the year.”

The Bank of Canada said that it is committed to holding its interest rate and based on their latest projection, economic slack will be absorbed sometime in the second half of 2022.

You May Also Like


An investor’s best friend is the candlestick chart, which you can use to identify trends in stocks, commodities, and currencies. The most reliable patterns...


The blog post breaks down what are candlestick patterns, how to read easy to see patterns, how candlesticks are formed, how to read charts,...

Diversified Industries

This blog breaks down the essential candlestick patterns that will help traders with investing. Also, investors are encouraged to look into the body, wick,...

Diversified Industries

In this blog we explore the top 6 unknown and cheap stocks for millennials to invest in. This list includes: Zynga (NASDAQ:ZNGA), Franks International...

Investor Scene, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. also provides financial news PR marketing and advertising for third parties for disseminating news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.

Copyright © 2022 - a GloBull Media, LLC Brand