Canada: Dollar Rebounds from 6-Month Lows.

The Canadian dollar strengthened past C$1.40 per US dollar, moving away from six-month lows as investors trimmed expectations for more aggressive Bank of Canada easing and as Canada’s main export recovered from near multi-year lows. The annual inflation rate rose to 2.4% in September 2025 from 1.9% in August, overshooting the 2.3% forecast and marking the highest reading since February. It was the first time in six months that inflation exceeded the Bank of Canada’s 2% threshold. The mean core inflation rate, closely watched by the Bank of Canada, rose to a one-year high of 3.1%, above the 3.0% consensus, which has reduced the magnitude and immediacy of expected Bank of Canada easing. Higher oil prices near the high-$50s per barrel have also helped by improving Canada’s terms of trade and near-term export receipts.