**BREAKING: Canadian Dollar Holds Ground After BoC Stands Pat on Rates**
The Canadian dollar is maintaining position against the greenback following the Bank of Canada’s decision to keep monetary policy unchanged at today’s meeting. USD/CAD is trading flat as policymakers held rates steady while expressing continued caution on both economic growth and inflation outlook, according to Scotiabank strategists Shaun Osborne and Eric Theoret.
The BoC’s dovish stance has kept currency markets in holding pattern, with traders awaiting clearer directional signals. Despite the cautious forward guidance from Canadian policymakers, the loonie has shown resilience and Scotiabank analysts are now eyeing potential gains toward the 1.3981 level against the US dollar.
The unchanged policy comes as markets continue weighing divergent monetary trajectories between the Federal Reserve and Bank of Canada, with immediate implications for cross-border trade flows and commodity-linked currency positioning.
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FXnCO Insight
** Traders should watch the 1.3981 technical level closely as a potential CAD strength target, particularly if upcoming Canadian economic data surprises to the upside against the BoC’s cautious baseline expectations.
Source: FXStreet