A central bank-rejuvenated Canadian dollar soared to three-month highs for the second time in as many days. The loonie finally broke out of a well-trodden range against the greenback thanks to the Bank of Canada's bullish expectations for the economy, rebounding oil prices and a data-induced setback for the greenback.
Odds of another BOC rate cut evaporated after the central bank forecast a rebound in growth over the coming year. Bear in mind, though, that a better outlook for the Canadian economy may hinge on a weak loonie, seen as a plus for the nation's exporters, a key growth engine.
Consequently, the loonie could continue its recent pattern of struggling to sustain gains for long stretches. Risk events Friday for USDCAD include key numbers from both sides of the border on inflation and the consumer.
