FXstreet.com (Barcelona) - As widely expected, the Bank of Canada provided no surprises by deciding to keep interest rates steady at 0.25%, where they have been held since April 2009, while reiterating its intention to leave rates unchanged until the end of the second quarter of this year.

The Bank says that a worldwide economic recovery is under way. On the domestic front, the Canadian economic recovery, after resuming positive growth in the third quarter of last year, is expected to have picked further in the fourth quarter. Even so, the country's rebound is still being hampered by the persistent strength of the Canadian dollar as well as sluggish US demand.

USD/CAD hits 6-day high

The USD/CAD has spiked to 1.0348, up almost 50 pips from pre-BoC announcement levels, to mark at new high since January 13.