Analyst: Canada's September inflation data will be key in determining the direction of Central Bank policy.

Jin10 Data, October 17 - Supported by a weaker dollar, the USD/CAD has slightly risen, but the gains are limited by falling oil prices and expectations of a rate cut from the Central Bank of Canada. Monex Europe analysts pointed out in a report that the Canadian inflation data for September, scheduled for release next Tuesday, will be critical in determining the direction of the Central Bank of Canada's policy. If inflation is below expectations, it will widen the spread and weaken the Canadian dollar. Analysts stated: “From a strategic perspective, we expect limited room for a rebound in the Canadian dollar, with the trend primarily supported by the path of U.S. Treasury yields and the attractiveness of returns, while fluctuation risks are related to developments in the U.S.”