Market News

Poloz Hints At Future Growth For Canadian Economy, Loonie Surges To 1.2900

Updated 1 week ago

The Loonie received a major boost to the upside this afternoon following BOC governor Poloz's talk titled "Today’s Labour Market and the Future of Work" at Queen’s University, in Ontario. The Canadian Dollar started the trading day against the U.S Dollar at around the 1.2840 region and was relatively stable within these boundaries for the majority of the morning and London session until Stephen Poloz declared the Canadian economy has huge room for growth potential without the necessary counteract of effecting inflation pressures for the BOC. Poloz also stated that companies will need to focus on growth within their own establishments to cater for increasing import & export demands, in his own words: “Growing their sales further means increasing investment, leading to the creation of new jobs and increased aggregate supply,”. The market reacted extremely quick to the bullish bias from the man himself and launched the Loonie above the 1.2900 handle with no signs of momentum slowing down as of now. Investors will be cautious around the next few announcements from the BOC in case bearish sentiments are hinted to counteract the current positivity surrounding the Canadian economy.