The Loonie advanced against the U.S. dollar after Bank of Canada Governor Stephen Poloz said he predicts strong recovery in the economy in the second half of this year on expected pick-up in non-energy exports.
“Our outlook is for the positives to begin to reassert themselves during the second quarter, and to do so clearly in the second half of the year,” Poloz told Canadian lawmakers on Tuesday.
He confirmed that economic recovery is being supported by the bank’s interest-rate cut.
While the drop in oil prices came faster than the bank’s prediction, it is not larger than expected, Poloz said.
The non-oil sector is doing well and likely to lead recovery, underpinned by strong U.S. demand and a lower Canadian dollar.
-The pair resumed its drop for a second straight session after positive comments from the BOC Governor to trade around 1.2047, where the session’s low was recorded at 1.2033.
-The USDCAD is currently doing attempts to remain below yesterday’s low of 1.2080.
–For knowing technical targets for the pair please see USDCAD: More bearishness in store