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The USD/CAD is soaring despite Wednesday’s 75 bps rate hike by the Bank of Canada, from 2.50% to 3.25%, amid mixed market sentiment, with most global equities tumbling, except for US stocks.
At the time of writing, the USD/CAD edges up 0.18%, trading at 1.3174, above its opening price at 1.31510.
The Canadian dollar failed to gain traction after the BoC decided to hike rates. The central bank noted that they would need to rise further, given the inflation figures.
According to the BoC, core inflation continues broadening, particularly in services, reiterating its commitment to price stability and adding that it would take action as required to achieve the 2% goal.
The USD/CAD seesawed on the news headlines, edging towards 1.3163 and then surging to 1.3201 before stabilizing at current exchange rates.
In the meantime, the Canadian economic docket also revealed the Ivey Purchasing Managers Index for August, which came at 60.9, seasonally adjusted, whine unadjusted rose by 57.1.
