Canadian Dollar Hits One-Week High As Bank Of Canada Holds Rates, Even As Toronto Home Sales Slip

The Canadian dollar rose to a one-week high and Canadian equity futures held steady after the Bank of Canada left its policy rate unchanged, according to wire reports. The currency's move suggests traders read the hold as consistent with, or slightly more hawkish than, their expectations. The rate decision landed in the same week Toronto reported its first monthly home sales decline in six months, for August. The combination points to a housing market still adjusting to borrowing costs even without a change in the central bank's benchmark rate. It is not yet clear from available reporting whether the Bank of Canada signaled anything about the path of future rate decisions, or whether the August Toronto sales dip reflects seasonal factors versus a more durable slowdown.