Canadian dollar rebounds from nearly three-week low as BoC rate hike bets jump

The Canadian dollar rebounded after nearly hitting a three-week low versus the U.S. dollar, as markets increased expectations for a Bank of Canada rate hike. The central bank flagged that upside risks to inflation have risen, shifting the interest-rate outlook and supporting CAD. This is likely to move FX sentiment modestly as the repricing of BoC hike probabilities continues.