CAD Gains Momentum as BoC Leaves Rates Unchanged with Hawkish Tone

The Canadian Dollar (CAD) has been performing well after the Bank of Canada's (BoC) decision to leave interest rates unchanged, but with a slightly more hawkish tone.

Scotiabank strategists Shaun Osborne and Eric Theoret note that while policy was left as expected, the BoC's messaging took on a more hawkish undertone, highlighting increased inflation risks and paving the way for December tightening.

The USD/CAD technicals have turned bearish, with fair value now estimated at 1.3811, suggesting scope for a move into the mid/upper 1.37s.