The Canadian dollar has gained ground after the Bank of Canada left its overnight target rate steady at 3% and issued a policy statement that suggests continued steady policy. The U.S. dollar is currently trading around C$1.0657 from C$1.0719 just before the bank issued its policy statement. "The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2% inflation target over the medium term," the statement says. "(The) Bank judges that the current level of the target for the overnight rate remains appropriately accommodative," it says. Some market participants had expected the bank could cut rates by 25 basis points, or issue a statement suggesting easier policy in the coming months due to weakening economic conditions.