USD/CAD jumped to near 1.3700 as US Retail Sales remained robust in September. The Canadian Dollar weakened as soft inflation data prompted hopes of a steady BoC policy. The market mood remains cautious amid deepening Middle East tensions. obust consumer spending data and Statistics Canada reported a decline in price pressures in September. US Retail Sales expanded at a robust pace of 0.7%, boosted by higher automobile demand and spending on dining out.
Fed Powell is expected to provide cues about the likely monetary policy action. The market mood remains downbeat amid deepening Middle East tensions. Persistent risks of intervention by Iran and Yemen in the Israel-Palestine conflict could worsen the situation further. On the Canadian Dollar front, a decline in consumer inflation has prompted expectations that the Bank of Canada will keep interest rates unchanged ahead. The monthly headline and core Consumer Price Index contracted by 0.