The surprise on Wednesday wasn't so much that the Bank of Canada held rates but the hint that no more rate cuts are coming. The Canadian dollar was the top performer while the euro was caught in wave of US dollar buying. Australian retail sales and trade balance are next. 1 of our GBPUSD trades was stopped out, today's issued GBPCAD short 15 minutes ahead of the BoC decision hit its final target for 170 pips, while the remaining AUDNZD short further nears its final target.
The market was stubbornly pricing a 25% chance of a BOC cut ahead of the decision and USD/CAD hit a session high of 1.2542 just before the data but it was a quick fall afterwards. The BOC held rates at 0.75% and said inflation risks are now 'more balanced', which is a sign that cuts aren't coming. The pair fell as much as 130 pips before a minor bounce late.