Bank of Canada to stay on hold through the rest of this year

The Canadian dollar has been caught in the riptide of a rip-roaring U.S. dollar, probing the six-year lows hit earlier this year of around 78 cents. 

But, in reality, the loonie is a mere bystander, generally rising on most of the crosses-it's up almost 15% y/y against the stumbling euro. 

Renewed softness in oil and gold prices, in part reflecting the soaring U.S. dollar, are weighing on the loonie, but it is also finding some support in a less dovish stance by the Bank of Canada. 

BMO Capital Markets notes in a report on Friday:

• With overall financial conditions now exceptionally supportive of growth, we now expect the Bank of Canada to stay on hold through the rest of this year-barring a dramatic downside surprise in either growth or oil prices. 
  
  
• And, February's jobs and home sales figures were broadly as expected, suggesting no major risks to the outlook.