FX Action: USD-CAD printed a near six-week high
FX Action: USD-CAD printed a near six-week high at 1.3089. The high has been a product of broader strength in the U.S. Dollar along with a 4%-plus dive in oil prices this week, which has weighted on the Canadian currency. Canada releases September CPI today, which is seen rising 0.1% on a month comparable basis after the 0.1% rise in August. Annual CPI growth is projected to slow to a 2.7% y/y pace in September from 2.8% in August and the lofty 3.0% growth rate in July, adding further support to the Bank's view that the run-up in CPI through July was due to temporary factors that are now unwinding. August retail sales (Friday) are expected to improve 0.6% after the 0.3% gain in July. Overall, the data should be supportive for the Canadian currency. Analysts expect the BoC to hike 25 bp at the October 24 announcement and have pencilled in three to four 25 bp rate hikes in 2019.