CAD
Main event today was the BoC rate decision, which saw an unexpected 25bps hike. CAD strength has been seen across the board with USD/CAD breaking through 1.22, falling from 1.2410 to 1.2142, 268 pips. A bounce was seen however finding some bids around the 1.2150 area. Strong data has continued to come from Canada, and despite only 6 of 33 surveyed analysts surveying this, a possible move was touted, as the OIS curve had a 45% chance of a hike.
USD
A slight miss in the headline ISM from the US proved to be overshadowed by the BoC’s hike. However, the greenback did see some slight bids against its European pairs, with the BoCs optimism possibly likely to creep into the minds of those at the Fed.
JPY
There has been speculation that the BoJ will start to intervene when USD/JPY reaches the 108.500 level in order to weaken the currency. When the level was approached we saw a rise in USD/JPY throughout the day showing JPY continuing to weaken throughout the session.
EUR
Subdued trade today as ECB decision takes place tomorrow.