However, the Canadian dollar fell sharply against its major currency counterparts including the pound and US dollar after the release of the Bank of Canada’s Business Outlook survey yesterday afternoon. The survey highlighted that the recent economic slowdown and global tensions surrounding trade were two areas which have started to have a negative impact on business confidence, which has fallen to its lowest level since 2016. The First Quarter Survey which took place in February and March, and surveyed a board of business executives, has showed a softening in sentiment and could mean that the Bank of Canada (BOC) may keep interest rates on hold for the foreseeable future.

Bank of Canada Governor Stephen Poloz was particularly dovish in a speech given over the weekend, suggesting that it is ‘data dependent’ whether or not the bank chooses to raise interest rates in the future. The BOC have raised interest rates 5 times since 2017, and the next decision meeting will take place on 24^th April, so data releases will now be keenly awaited for, for signs of an improving economy.

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