• USD/CAD moved slightly higher on Monday as investors digested Canada’s latest inflation figures.
• Canada's annual inflation rate eased to 2.2% in October, official data showed. Analysts polled by Reuters had forecast the inflation to be at 2.1%.
• The country’s inflation remained near the Bank of Canada’s target for most of 2025, but the recent rise serves as a reminder that price pressures are not yet fully under control..
• Following a soft period earlier this year, headline CPI rebounded to 2.4% in September. Core measures remain near 3%, highlighting why policymakers are cautious about declaring victory and why expectations for rate cuts may remain muted for now..
• Investors are now awaiting a speech by BoC Deputy Governor Nicolas Vincent on Wednesday and U.S. jobs data on Thursday, expected mainly to confirm earlier surveys indicating a slowdown in the labor market.
• Immediate resistance is located at 1.4060(Nov 10th high), any close above will push the pair towards 1.4133(23.6%fib).
• Support is seen at 1.4012(38.2%fb) and break below could take the pair towards 1.3917(50%fb).
Recommendation: Good to buy around 1.4020, with stop loss of 1.3930 and target price of 1.4100
