The buying interest around the Canadian dollar remains intact, keeping USD/CAD on the defensive around the 1.2600 level, as the focus shifts towards the US weekly jobless claims and President Joe Biden’s speech for further impetus. USD/CAD extends its downward spiral into a fifth day on Thursday, mainly undermined by the recent surge in WTI prices and the Bank of Canada’s (BOC) upbeat outlook on the economy.
The BOC maintained the interest rates at a record low of 0.25% while keeping the current pace its bond-buying on Wednesday. However, on the economy, the central bank said, “GDP growth in the first quarter of 2021 is now expected to be positive, rather than the contraction forecast in January.”