Canadian dollar rises as CPI data clips jumbo rate cut bets
The Canadian dollar strengthened for a second day against its U.S. counterpart on Tuesday as hotter-than-expected domestic inflation data spurred investors to reduce bets on another outsized interest rate cut from the Bank of Canada. Canada's annual inflation rate increased to 2.0% in October from 1.6% in September, eclipsing the 1.9% rate that economists had forecast, as gas prices fell less than the previous month. "This was a relatively hotter inflation report that tentatively scaled back the probability of upsizing December's likely rate cut but with further important developments still ahead," Derek Holt, head of capital markets economics at Scotiabank, said in a note.
The Canadian dollar strengthened for a second day against its U.S. counterpart on Tuesday as hotter-than-expected domestic inflation data spurred investors to reduce bets on another outsized interest rate cut from the Bank of Canada. Canada's annual inflation rate increased to 2.0% in October from 1.6% in September, eclipsing the 1.9% rate that economists had forecast, as gas prices fell less than the previous month. "This was a relatively hotter inflation report that tentatively scaled back the probability of upsizing December's likely rate cut but with further important developments still ahead," Derek Holt, head of capital markets economics at Scotiabank, said in a note.
