Canadian inflation highest in two decades
Wednesday 17 November, 2021
Daily Currency Update
CAD - Canadian DollarThe Canadian dollar edged lower against its US counterpart after oil prices fell and data showed inflation was in line with market expectations. Canadian inflation climbed to the highest in two decades, with the consumer price index (CPI) rising to 4.7% in October from the previous year vs. 4.4% in September. The October number is the highest since February 2003. USDCAD was up 0.28% trading at around 1.25940 at the time of writing.
Key MoversThe euro has remained weak, breaking below the 1.13 handle against the US dollar overnight. The Eurozone economy is starting to show signs of cracking, and appears to be underperforming some of the leading global economies too. Coupled with this, the European Central Bank doesn’t appear to want to discuss tightening their monetary policy and are a step or two behind the Bank of England and US Federal Reserve. EURUSD was down 0.12% sitting around 1.3073 at the time of writing. Demand for the pound rose to a one-week high against the US dollar after data showed that inflation in the UK climbed to a 10-year high in October, supporting market expectations of a probable interest rate hike as early as next month. Plus, the pound was also buoyed by the strength of the UK labor market, with data beating market expectations and exhibited a strong rebound in activity despite the completion of government support. GBPUSD was up 0.27% around 1.3463 at the time of writing. Demand for the US dollar climbed this morning after US retail sales posted a stronger than expected result yesterday. Retails sales jumped 1.7% last month after rising by only 0.8% in September, and this was its largest gain since March this year. It was the third straight monthly advance and even beat economists’ forecasts of a 1.4% increase.
- EUR/CAD: 1.4186 - 1.4244 ▲
- GBP/CAD: 1.6842 - 1.6962 ▲
- AUD/CAD: 0.914 - 0.9185 ▼
- USD/CAD: 1.2544 - 1.2598 ▲