The Canadian dollar retraced gains vs the US dollar as Governor of the Bank of Canada Carney said that a rate hike is 'less imminent' amid moderate global growth outlook and household troubles. Carney was addressing the press after the BoC decided to keep policy unchanged on Tuesday. Carney also stated that "it is important to recognize, for both Canadians and then the subset of Canadians that are market participants and then broader global market participants, that given the fact that the Canadian economy is operating with a very small output gap, given that we are in an expansion, not a recovery, which is relatively unique in advanced economies, and given our outlook for albeit moderate global growth, the implications of that for our terms of trade and the outlook for Canadian growth and including in all of this the potential evolution of imbalances in the household sector, that over time rates are more likely to go up than not."
USD/CAD jumped nearly 40 pips on the headlines, reaching a fresh daily high of 0.9954. USD/CAD is currently trading at 0.9941-46 level, having recovered from a low of 0.9887.