Canadian Dollar Gains on Weaker Than Expected US Inflation Numbers
The Canadian Dollar recently surged, reaching its best level in a week against the US Dollar. The increase in value came after the release of the latest US inflation data, indicating a slower-than-expected increase for October. The data revealed that inflation remained flat, defying expectations of a 0.1% increase, and showed a drop in the annualized inflation number from 3.7% in September to 3.2% in October. This cooling of inflation has led markets to anticipate an end to the Federal Reserve's rate hikes, with expectations now leaning towards a rate cut. In fact, the market is pricing in approximately 53 basis points of cuts from the Fed by July.
The Canadian Dollar recently surged, reaching its best level in a week against the US Dollar. The increase in value came after the release of the latest US inflation data, indicating a slower-than-expected increase for October. The data revealed that inflation remained flat, defying expectations of a 0.1% increase, and showed a drop in the annualized inflation number from 3.7% in September to 3.2% in October. This cooling of inflation has led markets to anticipate an end to the Federal Reserve's rate hikes, with expectations now leaning towards a rate cut. In fact, the market is pricing in approximately 53 basis points of cuts from the Fed by July.
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