Will the BoC dismiss the softness in inflation? | 25/10/17

[IronFX The Global Leader in Online Trading]( 25th October 2017 [start trading]( [open demo account]( All trading involves risk. It is possible to lose all your capital. Main Points of Today Will the BoC dismiss the softness in inflation? - The BoC is widely expected to remain on hold today, having hiked rates at both of its latest meetings. - Given the mixed economic data lately, market focus may be on what signals the Bank sends regarding the prospect of another hike this year (currently 54% probability). - If the Bank dismisses the recent soft patch in inflation as being transitory, CAD could recover some of its recent losses. - On the other hand, if policymakers appear more cautious, the currency may continue correcting lower. AUD tumbles on disappointing CPI prints - The Aussie came under renewed selling pressure overnight, following Australia’s CPI data for Q3. - Headline rate ticked down while the trimmed mean rate remained unchanged, both missing their forecasts for ticking up. - These likely scaled back market expectations for a more hawkish tone by the RBA. - AUD may remain on the back foot for a while, perhaps until the early-November RBA gathering. - As for today’s economic data: - UK: 1st estimate of GDP for Q3 (08:30 GMT). The forecast is for the economy to have grown at the same pace as previously. We view the risks surrounding this forecast as skewed to the upside. In case of a positive surprise, GBP could recover somewhat. - Germany: Ifo survey for October (08:00 GMT). - US: Durable goods orders for September (12:30 GMT). Headline rate is expected to have declined from previously, while the core one is expected unchanged. Risks may be tilted to the upside here as well. [Download full report]( The Market USD/CAD [Image title] - Support: 1.2660 (S1), 1.2600 (S2), 1.2530 (S3) - Resistance: 1.2770 (R1), 1.2850 (R2), 1.2940 (R3) AUD/USD [Image title] - Support: 0.7710 (S1), 0.7685 (S2), 0.7655 (S3) - Resistance: 0.7740 (R1), 0.7770 (R2), 0.7800 (R3) [View all Market insights]( [View IronFX Week Ahead report]( Economic Calendar [Image title] Prepared by: Charalambos Pissouros and Marios Hadjikyriacos [Facebook]( [Linkedin]( [Instagram]( [Twitter]( [Google+]( [YouTube]( - Tel: +44 (0) 20 3282 7777 - Email: support@ironfx.com High Risk Trading Warning: Our services include products that are traded on margin and carry a risk of losing all your initial deposit. Before deciding on trading on margin products you should consider your investment objectives, risk tolerance and your level of experience on these products. Trading with high leverage level can either be against you or for you. Margin products may not be suitable for everyone and you should ensure that you understand the risks involved. You should be aware of all the risks associated in regards to products that are traded on margin and seek independent financial advice, if necessary. Please read IronFX’s Risk Disclosure statement. Licences and Authorisations IronFX Global Limited is authorized and regulated by CySEC (Licence no. 125/10) Group Licences and Authorisations 8Safe UK Limited is authorized and regulated by the Financial Conduct Authority (FCA no. 585561) GVS (AU) Pty Limited is authorized and regulated by ASIC (AFSL no. 417482) IronFX does not offer its services to residents of certain jurisdictions such as USA, Iran, Cuba, Sudan, Syria and North Korea. [Unsubscribe](