Canadian Dollar futures held steady as Bank of Canada ignored energy inflation shock.

June Canadian Dollar futures outperformed major currency peers heading into the New York cash close, rebounding from early session lows to trade in positive territory. The recovery came as markets awaited the afternoon FOMC decision, which was expected to drive broader U.S. dollar volatility. Meanwhile, the Bank of Canada held its policy rate at 2.25% for a third consecutive meeting, citing sluggish 1.2% GDP growth projections and labor market softness. The BOC signaled it will look past the recent energy-driven inflation spike tracking toward 3%, effectively removing near-term rate hike expectations. This leaves the Canadian dollar caught between strong foreign exchange inflows tied to elevated geopolitical oil prices and a central bank unwilling to translate those commodity tailwinds into rate support.