CAD Rises on BoC Inflation Concerns, But Analysts Doubt Long-Term Gains
The Canadian dollar experienced an initial boost after the Bank of Canada left its interest rate unchanged at 2.25%.
In a surprise move, the bank's statement indicated a greater concern over inflation, hinting at a possible earlier hike in rates.
MUFG's Derek Halpenny notes that despite this, short-term valuation models suggest USD/CAD should trade higher, between 1.40-1.41.