Canadian dollar hits four-week high after BoC decision; speculators raise bearish bets to highest in 18 months

The Canadian dollar rose to a four-week high versus the U.S. dollar as the greenback fell broadly. However, the loonie’s advance was capped after the Bank of Canada omitted some hawkish language from its guidance, suggesting less aggressive rate expectations. Overall, the move appears more driven by USD weakness than a major Canada-specific policy shift.

Analysis

The Canadian dollar rose to a four-week high versus the U.S. dollar as the greenback fell broadly. However, the loonie’s advance was capped after the Bank of Canada omitted some hawkish language from its guidance, suggesting less aggressive rate expectations. Overall, the move appears more driven by USD weakness than a major Canada-specific policy shift.