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Loonie Poised for Rally as Traders Bet on Bank of Canada Rate Hikes
The loonie is well-positioned to revisit its strongest level of the year as traders boost wagers that the Bank of Canada will resume interest rate hikes. Chances of a 25 basis point hike at the June meeting rose to one-in-three, the highest since early March, after Tuesday’s unexpected jump in the annual pace of Canadian consumer inflation, the first such increase since June 2022. Odds of a hike by October reflect a near certainty, reversing expectations of year-end cuts just two weeks ago. The change in outlook follows a string of solid economic data including the April jobs report, housing data and consumer ... (full story)