CAD impacted by lower US inflation and retail data

Key Movers

The USD tried to recover some losses amid lower-than-expected Consumer Price Index (CPI) numbers for October which led to a shift in all asset classes of financial markets. Due to this data equities soared, commodities rallied, bonds gushed and in the forex market the Scandinavian and Central-Eastern European (CEE) currencies were the biggest winners. The October US inflation report indicated that the headline inflation grew at the slowest growth in more than two years. The annual headline CPI rose by 3.2%, softening from estimates of 3.3% and the former reading of 3.7%. The US Producer Price Index (PPI) was released showing monthly headline PPI went from 0.4% to -0.5%. The monthly Core PPI went from 0.2% to 0.0%. The yearly headline PPI went from 2.2% to 1.3%. The yearly Core PPI went from 2.7% to 2.4%.

The EUR/USD pair continued to fluctuate a little above 1.0850. Even though the data from the US proved that producer inflation softened at a faster pace than forecast in October, the US dollar holds its ground on upbeat Retail Sales data.

GBP fell from a two-month high around 1.2500 amid easing UK inflation. UK inflation reduced speed more than expected in October. Inflation looks to be heading in the right direction on the promise made by UK Prime Minister Rishi Sunak for halving inflation to 5.4% by the year-end.

The AUD/USD faced pressure around 0.6520 in the late European session. Meanwhile, Australia’s neighbor, the NZD had already rebounded after lower-than-expected US CPI data which led to hopes of an end to the global rate-hiking cycle.