CAD sees little reaction to downbeat PPI inflation data

Producer prices in Canada rose sharply to 2.4% MoM in October, from flat reading in September and against market expectations of a 0.4% rise.

Main upward pressure came from prices of refined petroleum energy products (+14.9%), which posted the first increase in four months, and the largest monthly increase for the category since March 2022 (+19.3%).

On a yearly basis, producer prices rose by 10.1%, after an upwardly revised 9.1% increase in the previous month.

USDCAD saw a relatively small reaction to today’s data release. Currency pair continued to trade around 1.3340 level, below 200 SMA (red line). Source: xStation5