BoC Holds at 2.25% as USDCAD Trades Near 1.3907 After Jobs Surge

The Bank of Canada left its policy rate unchanged at 2.25% on June 10, extending its pause and keeping the door open for modest hikes later in 2026. Markets had already priced in limited tightening after a surprise May jobs beat of +87.8k that cut unemployment to 6.6%, yet BNY flagged recession risks and urged caution. Earlier mixed signals included a services PMI rebound to 50.6 and a 0.5% Q1 productivity drop that lifted unit labour costs 1.4%. Wage growth cooled to 3% YoY, supporting the neutral stance while USDCAD held around 1.3907.