Bank of Canada raise interest rates as expected to 1.25% – Slight CAD strength against most majors

Oil Prices and Brexit Casuing Volatility for Pound to Canadian Dollar Exchange Rates

Today saw the Bank of Canada raise interest rates by 0.25% which saw slight gains for the Canadian Dollars against most majors.

The BOC however did mention in a statement that there are concerns surrounding the NAFTA agreement (North American Free Trade Agreement) was still a concern and this held back any major gains for the Canadian Dollar.

Generally, an interest rate hike is seen as very positive for a currency and a cut in rates is seen as negative, however with the hike in rates mainly expected and the warning regarding NAFTA and the concerns surrounding it we have seen Canadian Dollar exchange rates hold fairly firm.