The Canadian Dollar flew this morning on the back of the Canadian rate announcement. Sending Dollar Canada into a nosedive, over a big figure lower. All Canadian crosses experienced sharp moves as well, reacting accordingly to the sudden Canadian Dollar strength.

The Bank of Canada left their rates unchanged at 1.25%, which what was expected. However, the move was generated from the language of the Rate Statement. The removal of their “cautious” language in their approach to their rates. It is likely that inflation will be higher even though the BOC maintains its target of 2%.

It was a very confident statement that left us with a positive and upbeat view of the Canadian economy moving forward.