After Bank Of Canada Holds, What’s Next For The Loonie?

  • The Bank of Canada held rates this month sparking a further rally in the Canadian dollar.
  • The near term chart is bullish.
  • The longer term charts say otherwise.

And that’s what has the BoC worried and why it didn’t raise interest rates, despite strong year-over-year economic data. But, much of that good data, per the BoC’s statement is a result of housing bubbles in Toronto and Vancouver.

So, if those bubbles are bursting then the BoC has no room to raise rates and exacerbate an already bad situation.

Read the rest at Seeking Alpha

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