Dollar Slips as Fed Hike Bets Fade and EURUSD Tests 1.1113 | Technical Analysis – Forex Report | 17-10-2026
Forex This Week | 19–23 October 2026
Dollar Slips as Fed Hike Bets Fade and EURUSD Tests 1.1113
- Weekly bias
- Dollar mixed
- Firmer against CAD, CHF and EUR; capped at 159.20 against the yen
- Expected volatility
- Elevated
- Canadian, UK and Japanese inflation, then Friday’s flash PMIs
- Key event
- Flash PMIs
- Friday 23 Oct, 13:45 GMT (US)
- Key pivot level
- 159.20
- Decides whether the USDJPY triangle resolves lower
Market Overview
The dollar index slipped to about 101.8 and posted its first weekly decline in five weeks (Reuters, 16 October), as a selloff in technology shares and data-centre credit sent investors into Treasuries. The euro rebounded from a 17-month low reached on Wednesday and closed at 1.1239 (Bloomberg, 16 October), helped by remarks from Fed Chair Kevin Warsh that traders read as consistent with unchanged rates.
Canadian inflation opens the week on Monday at 12:30 GMT, UK labour data follows on Tuesday at 06:00 GMT, and UK consumer prices arrive on Wednesday at 06:00 GMT. Japanese inflation lands late on Thursday at 23:30 GMT. Friday brings flash PMIs from 07:30 GMT, with the US release at 13:45 GMT acting as the week’s main test of the dollar.
The desk’s read: the Canadian dollar offers the strongest setup, with trend, structure and domestic data aligned. The Australian dollar is the weakest, held up only by a trendline while momentum fades. Euro rallies look vulnerable to selling, whereas sterling has a base to build on.
Key highlights
- Fed calendar: officials are in a communications blackout until 29 October, and the policy decision follows on Wednesday 28 October.
- UK growth: Britain’s economy unexpectedly grew 0.1% in August (Reuters, 16 October), a firmer base for sterling before the inflation data.
- Japan: Governor Ueda again flagged the risk of underlying inflation overshooting the 2% target, and the yen gained after four weekly losses.
- Australia: employment fell short of expectations, trimming bets on another RBA rate increase.
- China: third-quarter GDP, retail sales and industrial output arrive Monday at 02:00 GMT; second-quarter growth was 4.3% year on year.
- Euro: options pricing still points to pressure on the currency in the months ahead (Bloomberg, 16 October).
Market Snapshot: Weekly Close, 16 October 2026
USDJPY US Dollar / Japanese Yen
157.976
−0.294−0.19% week
Range 157.545–158.949
155.000160.30
Sell near 159.20AUDUSD Australian Dollar / US Dollar
0.6946
−0.0038−0.55% week
Range 0.6894–0.7013
0.68000.7200
Buy near 0.6894EURUSD Euro / US Dollar
1.1239
+0.0042+0.37% week
Range 1.1113–1.1269
1.10001.1463
Sell near 1.1370GBPUSD British Pound / US Dollar
1.3322
+0.0097+0.74% week
Range 1.3137–1.3372
1.31371.3600
Buy near 1.3248USDCAD US Dollar / Canadian Dollar
1.4139
−0.0117−0.82% week
Range 1.4135–1.4300
1.40371.4400
Buy near 1.4135USDCHF US Dollar / Swiss Franc
0.8240
−0.0055−0.66% week
Range 0.8218–0.8395
0.81190.8600
Buy near 0.8197- US dollar index
- About 101.8
- First weekly fall in five weeks
- Fed October hold odds
- 83%
- Up from 49% a month earlier
- US 10-year yield
- Sharpest weekly fall in over a year
- Treasuries bid on equity stress
- Bank of Canada rate
- 2.25%
- Decision Wednesday 28 October
Trade Setups for the Week
| Pair | Direction | Entry | Stop | Target 1 | Target 2 | Reward:risk | Conviction |
|---|---|---|---|---|---|---|---|
| USDCAD | Long | 1.4135 | 1.4025 | 1.4300 | 1.4400 | 1.5 / 2.4 | High |
| USDJPY | Short | 159.20 | 160.45 | 157.545 | 155.000 | 1.3 / 3.4 | Medium |
| EURUSD | Short | 1.1370 | 1.1475 | 1.1113 | 1.1000 | 2.4 / 3.5 | Medium |
| GBPUSD | Long | 1.3248 | 1.3130 | 1.3400 | 1.3600 | 1.3 / 3.0 | Medium |
| USDCHF | Long | 0.8197 | 0.8105 | 0.8395 | 0.8600 | 2.2 / 4.4 | Medium |
| AUDUSD | Long | 0.6894 | 0.6785 | 0.7039 | 0.7200 | 1.3 / 2.8 | Low |
Reward:risk is the distance from entry to target 1 and target 2, divided by the distance from entry to the stop. Levels are conditional technical references, not recommendations.
Key Market Drivers
Treasuries Rally Even as Core Inflation Runs Hot
September core CPI rose 0.3% on the month against 0.2% expected, with the annual rate at 2.6% (Newsquawk). Yet the US 10-year yield recorded its largest weekly fall in more than a year, as cautious Fed commentary and the technology selloff lifted bond demand. Markets now price an 83% chance of an October hold, up from 49% a month earlier. Lower yields, not the inflation print, set the dollar’s direction.
Key events: Thursday 22 October, 12:30 GMT, US jobless claims.
Canadian Inflation Tests a Cautious Bank of Canada
TD Securities expects headline CPI to firm to 3.2% on energy costs while CPI-trim and CPI-median ease to 1.9%, a mix that should keep the Bank of Canada balanced rather than hawkish. The policy rate has stood at 2.25% since October 2025, and the central bank is expected to remain cautious at its 28 October meeting. A core miss would reinforce a prolonged pause.
Key events: Monday 19 October, 12:30 GMT, Canada CPI; Wednesday 28 October, Bank of Canada decision.
Flash PMIs Test Energy-Driven Price Pressure
Energy prices lifted by the Middle East conflict keep input costs rising, and September surveys showed a renewed upturn in prices alongside resilient growth (S&P Global, via FXStreet, 23 September). October readings show whether demand holds as costs build. A firm US survey would revive rate-hike pricing, while a soft one would validate the recent drop in yields.
Key events: Friday 23 October: Germany 07:30 GMT, Eurozone 08:00 GMT, UK 08:30 GMT, US 13:45 GMT.
Sterling Meets Inflation and the Budget
UK consumer prices rose 3.1% in August with core at 2.6%, and MUFG Research sees headline inflation on course to reach 4%. Wednesday’s release therefore carries more weight than the labour data a day earlier. The Budget on 28 October looms over business sentiment, so any inflation surprise feeds directly into Bank of England pricing.
Key events: Tuesday 20 October, 06:00 GMT, UK labour market; Wednesday 21 October, 06:00 GMT, UK CPI.
Friday’s US flash PMI decides whether the dollar holds the 159.20 cap in USDJPY and the 1.1113 floor in EURUSD; a firm print favours the upper levels, a soft one the lower.
Flash PMI Scenario Analysis
US flash PMIs are due Friday 23 October at 13:45 GMT. Consensus is 57.9 for services (prior 58.8) and 55.6 for manufacturing (prior 55.9).
Firm PMIs: US services at 58.8 or above
Resilient activity and rising prices would keep rate-hike risk alive, lifting Treasury yields and the dollar.
- USDJPY159.20, then 160.30
- AUDUSD0.6894, then 0.6800
- EURUSD1.1113, then 1.1000
- GBPUSD1.3248, then 1.3137
- USDCAD1.4300, then 1.4400
- USDCHF0.8395, then 0.8600
Soft PMIs: US services below 57.0
A miss would deepen the demand worries raised by the technology selloff, pull yields lower and extend the dollar’s weekly decline.
- USDJPY157.545, then 155.000
- AUDUSD0.7039, then 0.7200
- EURUSD1.1370, then 1.1463
- GBPUSD1.3400, then 1.3600
- USDCAD1.4135, then 1.4037
- USDCHF0.8197, then 0.8119
USDJPY | US Dollar / Japanese Yen
USDJPY Outlook: Triangle Squeeze Leaves 159.20 as the Cap
157.976 −0.294 (−0.19%) week Range 157.545–158.949
Outlook: Bias leans lower while the pair stays beneath 159.20, where the descending line and the yellow average meet. The week closed inside a narrowing triangle after another failed push higher. A rally into the 159 area offers the cleaner zone to work from; a close through 160.30 would end the downward pressure.
Key levels
- Support 2
- 155.000
- Support 1
- 157.545
- Resistance 1
- 159.20
- Resistance 2
- 160.30
Weekly chart structure
- Falling resistance from the July peak and a rising base from April 2025 are converging towards an apex.
- The yellow average at 159.202 caps rallies; orange averages at 157.964 and 153.531 sit at the close and well below it.
- A small bearish candle with an upper wick rejected the falling line after opening at 158.270.
- RSI at 49.42 sits under its average at 50.41, a neutral reading without directional conviction.
Key technical levels
Support 1 at 157.545 is the week’s low; Support 2 at 155.000 sits above the rising base and the 153.531 average. Resistance 1 at 159.20 matches the yellow average; Resistance 2 at 160.30 is the August swing high. A weekly close above 160.30 would change the picture, while a close beneath 155.000 would break the triangle.
Fundamental drivers
Yen support
A disappointing Bank of Japan meeting in mid-September sent the yen tumbling, but tightening rhetoric from Japan’s authorities has steadied it (Reuters, 16 October). National CPI on Thursday at 23:30 GMT tests that tone.
Dollar side
Fading concern over an Iran escalation removed part of the haven bid for the dollar, while lower Treasury yields narrowed the rate advantage that had pushed the pair towards 160.
USDJPY trade setup
ShortMedium conviction- Entry
- 159.20
- Stop loss
- 160.45
- Target 1
- 157.545
- Target 2
- 155.000
Risk 1.25. Reward:risk 1.3 to target 1, 3.4 to target 2.
Rationale: The falling line, yellow average and Resistance 1 converge at 159.20, RSI is neutral, and yen policy rhetoric has firmed; targets trace the lower half of the triangle.
Invalidation: A daily close above 160.45. Hot US data could lift Treasury yields and force a squeeze through the line.
AUDUSD | Australian Dollar / US Dollar
AUDUSD Outlook: Trendline Support at 0.6894 Faces Another Test
0.6946 −0.0038 (−0.55%) week Range 0.6894–0.7013
Outlook: Bias is cautiously firmer while 0.6894 holds, because the rising line from April 2025 has so far contained every pullback. Momentum is weak, so rallies into the 0.7039 area may stall. The trendline itself is the zone to work from; a weekly close beneath 0.6800 would damage the structure.
Key levels
- Support 2
- 0.6800
- Support 1
- 0.6894
- Resistance 1
- 0.7039
- Resistance 2
- 0.7200
Weekly chart structure
- The rising line from the April 2025 low supports price, while a falling line from the May 2026 high forms lower highs above.
- The yellow average at 0.70393 and an orange average at 0.69548 sit overhead; the orange average at 0.66840 lies far below.
- A red candle with a lower wick pierced the trendline and closed back near it.
- RSI at 43.75 is under its average at 54.11, showing fading momentum.
Key technical levels
Support 1 at 0.6894 is the week’s low and the trendline; Support 2 at 0.6800 is a round level above the 0.66840 average. Resistance 1 at 0.7039 is the yellow average; Resistance 2 at 0.7200 is the round level beneath the September highs. A weekly close above 0.7039 would improve momentum.
Fundamental drivers
China data
Third-quarter GDP and retail sales on Monday and the People’s Bank of China decision on Tuesday set the tone; stimulus hopes helped the currency earlier this month (LiteFinance, 14 October).
Trade link
China is Australia’s largest trading partner, so weak Chinese output would weigh on the currency, while a firm print would revive the stimulus argument and support the pair.
AUDUSD trade setup
LongLow conviction- Entry
- 0.6894
- Stop loss
- 0.6785
- Target 1
- 0.7039
- Target 2
- 0.7200
Risk 0.0109. Reward:risk 1.3 to target 1, 2.8 to target 2.
Rationale: The April 2025 trendline aligns with the week’s low and the long-term average at 0.66840 lies far below, but weak momentum limits conviction.
Invalidation: A daily close below 0.6785. Soft Chinese data could push the pair through the trendline.
EURUSD | Euro / US Dollar
EURUSD Outlook: Triangle Floor at 1.1113 Meets Heavy Overhead Averages
1.1239 +0.0042 (+0.37%) week Range 1.1113–1.1269
Outlook: Bias stays lower while the pair trades beneath 1.1370, since all three averages slope down and RSI is near oversold. The first weekly gain after five losses came from the base of a triangle. A rebound into 1.1370 is the zone to work from; a close above 1.1463 would turn the trend.
Key levels
- Support 2
- 1.1000
- Support 1
- 1.1113
- Resistance 1
- 1.1370
- Resistance 2
- 1.1463
Weekly chart structure
- Symmetrical triangle: the floor rises from the January 2025 low and the ceiling falls from the February 2026 peak.
- Orange averages at 1.13695 and 1.15903 and a yellow average at 1.14632 are all overhead and falling.
- A green candle with a long lower shadow tested the floor and closed well above the week’s low.
- RSI at 36.80 is under its average at 45.34, close to the oversold boundary.
Key technical levels
Support 1 at 1.1113 is the week’s low on the triangle floor; Support 2 at 1.1000 is the round level beneath it. Resistance 1 at 1.1370 is the orange average; Resistance 2 at 1.1463 is the yellow average. A weekly close under 1.1000 would break the triangle.
Fundamental drivers
Eurozone activity
The September flash composite PMI rose to 53.1 with services at 53.0 (FXStreet, 23 September); manufacturing is expected between 52.5 and 53.2 on Friday against 52.9 previously.
Fiscal and ECB risk
France’s budget deficit clouds the outlook (Briefs Finance, 16 October), and the ECB’s Panetta speaks on Thursday 22 October, which may shift rate expectations against the dollar.
EURUSD trade setup
ShortMedium conviction- Entry
- 1.1370
- Stop loss
- 1.1475
- Target 1
- 1.1113
- Target 2
- 1.1000
Risk 0.0105. Reward:risk 2.4 to target 1, 3.5 to target 2.
Rationale: The orange average at 1.1370 caps the rebound; trend, options pricing and fiscal worries favour sellers, though the triangle floor limits follow-through.
Invalidation: A daily close above 1.1475. A sharper fall in US yields could lift the euro through both averages.
GBPUSD | British Pound / US Dollar
GBPUSD Outlook: Rebound From the Triangle Base Meets 1.3400
1.3322 +0.0097 (+0.74%) week Range 1.3137–1.3372
Outlook: Bias is modestly higher while the pair holds above 1.3248, after a rebound from the triangle base. The path runs through the 1.3400 averages, where earlier rallies stalled. A pullback into the orange average offers the zone to work from; a close beneath 1.3137 would weaken the structure.
Key levels
- Support 2
- 1.3137
- Support 1
- 1.3248
- Resistance 1
- 1.3400
- Resistance 2
- 1.3600
Weekly chart structure
- Price remains inside a symmetrical triangle whose lower boundary climbs from early 2025 and whose upper boundary descends from February 2026.
- The orange average at 1.32479 now supports; the yellow average at 1.33880 and an orange average at 1.34001 cap rallies.
- A long lower shadow pierced the base before a strong green close.
- RSI at 46.61 sits below its average at 50.18 but is turning up from the low 40s.
Key technical levels
Support 1 at 1.3248 is the orange average; Support 2 at 1.3137 is the week’s low on the triangle base. Resistance 1 at 1.3400 combines with the yellow average at 1.3388 as one band; Resistance 2 at 1.3600 matches the falling top. A weekly close above 1.3600 would end the compression.
Fundamental drivers
Domestic data
Unemployment of 4.9% is expected on Tuesday at 06:00 GMT, and retail sales follow on Friday at 06:00 GMT, with consumer demand described as subdued.
Survey risk
Business surveys flagged pre-budget uncertainty in September (MUFG Research); the UK flash PMI on Friday at 08:30 GMT shows whether that weighed on October activity.
GBPUSD trade setup
LongMedium conviction- Entry
- 1.3248
- Stop loss
- 1.3130
- Target 1
- 1.3400
- Target 2
- 1.3600
Risk 0.0118. Reward:risk 1.3 to target 1, 3.0 to target 2.
Rationale: The rebound from the triangle base and a close back above the 1.3248 average favour buyers; a firm UK inflation print would add support.
Invalidation: A daily close below 1.3130. Softer UK inflation would weaken the case for a hawkish Bank of England.
USDCAD | US Dollar / Canadian Dollar
USDCAD Outlook: Breakout Retest at 1.4135 Is the Level to Watch
1.4139 −0.0117 (−0.82%) week Range 1.4135–1.4300
Outlook: Bias is higher while 1.4135 holds, since the pair broke above a falling line from February 2025 and is now retesting it. Weak Canadian jobs data leaves the loonie vulnerable. A hold on the retest offers the zone to work from; a weekly close beneath 1.4037 would turn the breakout into a false move.
Key levels
- Support 2
- 1.4037
- Support 1
- 1.4135
- Resistance 1
- 1.4300
- Resistance 2
- 1.4400
Weekly chart structure
- A symmetrical triangle resolved upwards once price cleared the falling line drawn from the February 2025 peak.
- The yellow average at 1.40366 and orange averages at 1.39483 and 1.38828 are stacked beneath price and rising.
- A large red candle reversed from 1.4300 and closed on the broken line, a retest of the breakout rather than a failure.
- RSI at 57.12 is above its average at 53.77, steady but below its recent peak.
Key technical levels
Support 1 at 1.4135 is the broken line and the week’s low; Support 2 at 1.4037 is the yellow average. Resistance 1 at 1.4300 is the week’s high; Resistance 2 at 1.4400 is the next round level. A weekly close under 1.4037 would invalidate the breakout.
Fundamental drivers
Labour market
Employment fell in August and September, and unemployment has plateaued near 6.5% (RBC Economics); the loonie reached its weakest level since April 2025 after the 9 October jobs release.
Energy and policy
Elevated energy prices support Canada’s terms of trade, yet RBC expects limited pass-through into core prices; bank projections for October cluster between 1.40 and 1.44 (MTFX Group).
USDCAD trade setup
LongHigh conviction- Entry
- 1.4135
- Stop loss
- 1.4025
- Target 1
- 1.4300
- Target 2
- 1.4400
Risk 0.0110. Reward:risk 1.5 to target 1, 2.4 to target 2.
Rationale: Trend, breakout retest and weak Canadian labour data agree; averages rise beneath price and RSI holds above 50.
Invalidation: A daily close below 1.4025. Hot Canadian core inflation could revive rate-hike talk and lift the loonie.
USDCHF | US Dollar / Swiss Franc
USDCHF Outlook: Channel Pullback Meets Support at 0.8197
0.8240 −0.0055 (−0.66%) week Range 0.8218–0.8395
Outlook: Bias is higher while 0.8197 holds, because the rising channel from February remains intact despite a rejection at its upper edge. The week’s decline took price back towards the orange average. A pullback to that average is the zone to work from; a close below 0.8119 would weaken the channel.
Key levels
- Support 2
- 0.8119
- Support 1
- 0.8197
- Resistance 1
- 0.8395
- Resistance 2
- 0.8600
Weekly chart structure
- A rising channel from the February 2026 low guides the advance, and the week’s high reached its upper boundary.
- The orange average at 0.81971 sits just beneath the close, with the yellow average at 0.81187 and an orange average at 0.79750 further below.
- A red candle with a long upper wick marked the first clear rejection after a run of higher closes.
- RSI at 60.50 is above its average at 59.36 and has eased from its recent high.
Key technical levels
Support 1 at 0.8197 is the orange average; Support 2 at 0.8119 is the yellow average on the lower channel. Resistance 1 at 0.8395 is the week’s high; Resistance 2 at 0.8600 is the next major round level. A weekly close above 0.8395 would confirm a channel breakout.
Fundamental drivers
Safe-haven flows
Stress from the technology selloff spread into parts of the credit market (Reuters, 16 October), a backdrop that tends to favour the franc and explains the pair’s reversal from the channel top.
US yields
Lower Treasury yields trimmed the dollar’s yield advantage; a firmer US yield path would reopen the upper channel and a further fall would test the lower edge.
USDCHF trade setup
LongMedium conviction- Entry
- 0.8197
- Stop loss
- 0.8105
- Target 1
- 0.8395
- Target 2
- 0.8600
Risk 0.0092. Reward:risk 2.2 to target 1, 4.4 to target 2.
Rationale: A pullback to the orange average within a rising channel, with RSI above 55; the weekly rejection and softer dollar temper conviction.
Invalidation: A daily close below 0.8105. Renewed risk aversion would favour the franc.
Economic Calendar: 19–23 October 2026
| Date | Event | Market | Impact | Context |
|---|---|---|---|---|
| 02:00 GMT | China third-quarter GDP, retail sales, industrial output | AUDUSD | High | Prior GDP growth 4.3% year on year; 0.6894 trendline |
| 12:30 GMT | Canada CPI, September: consensus 3.2% year on year, prior 3.0% | USDCAD | High | Core measures expected near 1.9%; 1.4135 retest |
| 01:15 GMT | People’s Bank of China rate decision, 3.00% expected | AUDUSD | Medium | Stimulus signals matter for 0.7039 |
| 06:00 GMT | UK labour market: unemployment 4.9% expected, prior 4.9% | GBPUSD | Medium | Orange average at 1.3248 |
| 06:00 GMT | UK CPI, September: prior 3.1% year on year, core prior 2.6% | GBPUSD | High | 1.3400 resistance band |
| 12:30 GMT | US weekly jobless claims | USD pairs | Low | Treasury yield reaction in a quiet US week |
| 23:30 GMT | Japan national CPI, September | USDJPY | High | 159.20 cap and 157.545 support |
| 06:00 GMT | UK retail sales, September | GBPUSD | Medium | Consumer demand against 1.3248 |
| 08:00 GMT | Eurozone flash PMIs, October (Germany 07:30 GMT) | EURUSD | Medium | 1.1370 resistance, 1.1113 floor |
| 08:30 GMT | UK flash PMIs, October | GBPUSD | Medium | Budget uncertainty in sentiment |
| 13:45 GMT | US flash PMIs: services 57.9 expected (prior 58.8), manufacturing 55.6 (prior 55.9) | All USD pairs | High | Decides 159.20 in USDJPY and 1.1113 in EURUSD |
Conclusion
The week turns on whether firm activity and price data revive Fed hike risk, or whether the technology selloff keeps pulling yields lower. Inflation releases from Canada, the UK and Japan add currency-specific moves, while Friday’s PMIs set the dollar’s direction. A close above 160.30 in USDJPY or below 1.1000 in EURUSD would change the view.
USDCAD is our strongest setup, with trend, structure and labour data aligned. USDJPY, EURUSD, GBPUSD and USDCHF follow with moderate conviction, and AUDUSD ranks last on weak momentum.
We favour patience: wait for price to reach each level, size positions so that a stop-out is acceptable, and avoid adding exposure ahead of the 06:00 GMT UK inflation release and Friday’s PMIs.
| Pair | Bias | Key level | Targets | Invalidation | Principal risk |
|---|---|---|---|---|---|
| USDJPY | Sell near 159.20 | 159.20 | 157.545 / 155.000 | Above 160.45 | Firm US yields lifting pair |
| AUDUSD | Buy near 0.6894 | 0.6894 | 0.7039 / 0.7200 | Below 0.6785 | Weak Chinese data |
| EURUSD | Sell near 1.1370 | 1.1370 | 1.1113 / 1.1000 | Above 1.1475 | Sharp fall in US yields |
| GBPUSD | Buy near 1.3248 | 1.3248 | 1.3400 / 1.3600 | Below 1.3130 | Soft UK inflation print |
| USDCAD | Buy near 1.4135 | 1.4135 | 1.4300 / 1.4400 | Below 1.4025 | Hot Canadian core inflation |
| USDCHF | Buy near 0.8197 | 0.8197 | 0.8395 / 0.8600 | Below 0.8105 | Renewed haven demand for franc |
Trade USDJPY, EURUSD, GBPUSD and other forex pairs with Capital Street FX.
Frequently Asked Questions
What is the main event for forex markets this week?
Friday’s flash PMIs cover four economies within hours, so they test both growth resilience and energy-driven price pressure. The US release at 13:45 GMT carries extra weight because no Fed speakers are scheduled to offset it.
Why can hot inflation fail to lift the dollar?
Markets respond to the expected policy path, not the print alone. When officials sound cautious, hike odds fall, yields drift lower and the currency loses its yield support, even after a strong inflation reading.
What does 1.1113 mean for EURUSD?
It marks the low of the rebound week on the rising triangle floor. Holding above it keeps the pattern intact, while a weekly close beneath the round level below would signal that the triangle has broken.
Why does Canadian CPI matter for USDCAD?
The Bank of Canada watches trimmed and median measures most closely. Core prints near 1.9% would ease hike pressure and support the dollar against the loonie, whereas a surprise above 2% would revive the Canadian currency.
When do the Fed and Bank of Canada announce next?
Both banks announce on Wednesday 28 October, the week after this one. Positioning ahead of those decisions can influence price action late in the current week.
