Skip to content Loonie Slips Past 1.38 as Inflation Dips Below Target
Following recent economic reports, the value of the Canadian dollar fell below 1.382 against the US dollar, reaching its lowest point since August.
The USD/CAD 4-hour chart below demonstrates the price, support, and resistance levels.
These indicated that Canada’s inflation rate dropped to 1.6% in September, the lowest since February 2021, and now sits under the central bank’s target of 2%. This has led to predictions that the Bank of Canada might reduce interest rates by 50 basis points soon.
Despite this, the central bank’s favored measures of core inflation, the Median and Trimmed-Mean CPI, have remained stable at 2.3% and 2.4%, respectively.
Canada Adds 46,700 Jobs: Beats Expectations
The recent jobs data was better than expected. The Canadian economy added 46,700 jobs in September—significantly above the anticipated 27,000—while the unemployment rate surprisingly fell to 6.5%.
The Bank of Canada is set to make its next policy decision on October 23rd. Last month, Governor Tiff Macklem mentioned the possibility of larger rate cuts if the economy and inflation cooled more quickly than anticipated.
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