Loonie jumps across the board as a result of BOC rate surprise rate hike

Against market expectations, the Bank of Canada hiked interest rates by 25 basis points to 4.75%. The central bank expressed growing concern over Consumer Price Index inflation remaining “materially above the 2% target” in its statement.
The USD/CAD falls toward 1.3300 following the Bank of Canada’s (BoC) surprise decision to hike its benchmark interest rate. Because of the BoC ruling, the Loonie jumped, before giving up most of the gains of the initial reaction of the rate hike.