Overall inflation slowed from 3.8% to 3.1% y/y in October versus an expected 3.2%. On the other hand, core inflation came in above expectations, ticking up 0.3% y/y in October, albeit lowering the annual rate of increase from 2.8% to 2.7%.
Inflation risks stalling near 3% in the coming months as Canadian data undergoes a high base effect, with a 0.7% jump in prices last October, followed by a 0.1% rise in November and a 0.6% decline in December. Prices need a repeat of the dip late last year to push annual inflation below 3%.
Today’s statistics support those waiting for an extended pause on Canada’s key rate, providing no food in favour of a hike or an earlier reversal.
The FxPro Analyst Team
- EURCAD reversed from pivotal support level 1.4900 - Likely to rise to resistance level…
- EURUSD reversed from support level 1.1030 - Likely to rise to resistance level 1.1200…
The unwinding of the carry trade in the FX market continues, with the major safe…
Market Picture The pressure on risk assets continues, pushing the crypto market capitalisation back below…
- AUDUSD reversed from support level 0.6700 - Likely to rise to resistance level 0.6800…
- Gold reversed from support level 2475.00 - Likely to rise to resistance level 2535.00…
This website uses cookies