- GBPUSD slides following inflation data
- Canada and US economic calendars are empty today.
- US opens mixed after quiet overnight session.
USDCAD open: 1.4012, overnight range 1.3994-1.4024, close 1.4023, WTI 58.11, Gold 4070.37
The Canadian dollar inched higher alongside broad U.S. dollar weakness against the major currencies.
Yesterday, Canada’s latest inflation report came in slightly hotter than expected, which would typically make the Bank of Canada hesitant to cut rates. However, inflation levels are close enough to target for policymakers to look past them, especially given the growing risks to economic growth. The domestic economy is already stagnating, and U.S. tariffs are making things worse.
WTI oil is holding on to yesterday’s gains, trading between 57.34 and 58.49. Prices are underpinned by optimism that a potential India–U.S. trade agreement could reduce India’s reliance on Russian crude.
There’s not much on the calendar to steer FX trading today unless one of the many U.S. corporate earnings reports sparks a reaction. Tesla (TSLA: NASDAQ) posts its results after the market closes.
Asian markets ended mixed—Australia’s ASX 200 lost 0.71%, Hong Kong’s Hang Seng fell 0.94%, and Japan’s Topix rose 0.52%. As of 7:15 a.m.,
European indexes are also mixed: France’s CAC-40 is down 0.23%, the U.K.’s FTSE 100 is up 0.87%, and Germany’s DAX is down 0.14%. S&P 500 futures are flat, the U.S. Dollar Index (DXY) is at 99.08, the 10-year Treasury yield is 3.95%, and gold trades near $2,039.70.
EURUSD is near the bottom of its 1.1587–1.1616 range, weighed down by broad U.S. dollar strength. Next week’s ECB meeting isn’t expected to deliver any surprises, while France’s political scene has quieted and regional data remains uneven. With Fed rate cuts expected in the coming months, the dollar’s rally may be nearing exhaustion.
GBPUSD fell from 1.3387 to 1.3312 after inflation data missed forecasts. Headline CPI rose 3.8% y/y versus 4.0% expected, and Core CPI climbed 3.5% versus 3.6%. The Retail Price Index dropped 0.4% after a 0.4% rise in August. The data supports a potential Bank of England rate cut in December, though officials are unlikely to move at the November 6 meeting ahead of the Autumn Budget.
USDJPY drifted in a 151.49–151.96 range as traders consolidated recent gains. Reports suggest Prime Minister Takaichi may unveil a ¥13.8 trillion ($92 billion) stimulus plan soon. Former BoJ Governor Haruhiko Kuroda criticized U.S. policy, saying Washington is “destroying the global economic order.”
AUDUSD traded between 0.6483 and 0.6513, rising in Asia before easing in early New York. Initial enthusiasm over a U.S.–Australia rare-earths deal faded quickly, as the $1 billion financing plan remains months away.
