Canadian dollar futures climbed to an eight-month peak before paring gains following the Bank of Canada interest rate announcement. The central bank maintained the overnight rate at 2.25%, citing stable inflation and growth projections of 1.1% for 2026. While the loonie initially showed strength, broader currency markets reacted to the FOMC decision to leave rates unchanged. Despite two dissenting votes in favor of a 25 bps cut, the U.S. dollar rallied across most major pairs. Market participants continue to monitor trade uncertainties and unemployment data, which currently stands at 6.8%, as officials remain ready to adjust policy if economic conditions shift.