 Canadian Dollar weakens broadly decline in early US session following weaker-than-expected inflation data. The drop in headline CPI, driven primarily by falling gasoline prices, was steeper than anticipated. However, core inflation measures, especially the closely-watched CPI common, remained near 2% level. This further solidifies expectations that BoC would accelerate its policy easing, with a 50bps rate cut likely at the October 23 meeting. In contrast, British Pound found some support from a mixed set of labor market data. UK unemployment rate unexpectedly fell to 4%, while wage growth slowed to its lowest point in over two years. This data leaves the decision for a BoE rate cut in November finely balanced. However, the market's focus is now shifting to tomorrow's UK CPI release, which is expected to carry more weight in shaping BoE's course of action.... |
