The euro traded at C$1.5796 against the Canadian dollar on Oct. 19, down 0.75% for the week, while higher Canadian inflation drew attention to the Bank of Canada's next interest rate decision.
Foreign exchange firm MTFX Inc. recorded the quote at 11:51 a.m. ET (15:51 UTC). FXStreet linked the euro's weakness to unrest in France, where demonstrations took place Oct. 17.
French President Emmanuel Macron said in an Oct. 18 address that several hundred thousand people had protested over living costs and fuel prices. He distinguished the demonstrators from those who damaged shops and public buildings and said affected businesses would receive help. Macron connected the fuel-price concerns to the conflict in the Persian Gulf.
Canadian consumer prices rose 3.1% in September from a year earlier, compared with 3.0% in August, Statistics Canada said. The September figure was above the Bank of Canada's 1% to 3% control range and exceeded RBC Economics' estimate of 3% before the release.
Gasoline prices rose 27.8% from a year earlier, compared with a 22.8% increase in August. Inflation excluding gasoline slowed to 2.2% from 2.4%. Statistics Canada said rising fuel-oil prices weighed more heavily on households in Atlantic Canada because the region relies more on that fuel.
Reuters reported that the Canadian dollar gained against the U.S. dollar after the inflation release.
RBC economist Abbey Xu described the Bank of Canada's challenge as balancing a soft economy against the risk that sustained energy costs spread to other prices. RBC said there was limited evidence of significant spread so far and expects the central bank to hold rates through the end of 2026.
The Bank of Canada kept its overnight-rate target at 2.25% on Sept. 2. It is scheduled to announce its next decision Oct. 28 at 9:45 a.m. ET (13:45 UTC).
