FX.co ★ Canadian Dollar Steady After Inflation Data

The Canadian dollar maintained its stability at approximately 1.40 per USD, sustaining its recovery from the recent trough of 1.412 seen on November 6th. This stabilization occurred as markets assessed ongoing inflationary pressures alongside a robust labor market. In October, the trimmed-mean core inflation rate, a key measure preferred by the Bank of Canada for assessing underlying inflation, decreased to 3%. Despite this decline, it remained near its peak since February of the same year. Such data reinforced the belief that the Bank of Canada has likely ended its rate-cutting agenda, as policymakers suggested, assuming their central projections are accurate. This takes into account the economy's ability to withstand U.S. tariff implications and maintain core inflation metrics above the desired target. Furthermore, the unemployment rate experienced a decline to 6.9% in October, down from a four-year high of 7.1% in September. This improvement was driven by significant job gains and a reduction in individuals seeking employment. Additionally, wage growth surged to an eight-month high of 4%, surpassing recent inflation figures.