Canadian Monetary Policy report. Oil Drops on Inventories Increase - 18.4.2012

The Canadian dollar was little changed against the greenback during today’s trading session as traders were expecting the release of MPR from the Bank of Canada, after it held the overnight rate at the same level yesterday. The greenback was steady against the Canadian dollar during the release of the Monetary Policy Report. It remained in the flat area between the 0.9914 resistance and the 0.9862 support. At the release of the MPR the BOC raised its forecast for growth this year to 2.5 per cent from 2 per cent and said that diminished risks from Europe and the U.S boost consumer and business spending. The bank also said that a policy-rate increase “may become appropriate”. Crude Oil inventories in the U.S rose by 3.9M barrels, which indicate that the demand for Oil drops and the prices for the Crude Oil May contract suddenly fell to the 103.38 support level.