The Bank of Canada left the interest rate unchanged at 1.25% as widely expected and expressed a mix of caution despite optimism. They are pleased with wage and inflation growth and also see the economy rebounding in Q2. However, they say that rate hikes will be gradual and they will be cautious with them.
USD/CAD jumped on the caution phrase and topped 1.26. However, things may still change at the press conference.
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