Canada's Statistics Office is set to release September's inflation data on Tuesday, with forecasts indicating a 1.8% year-over-year increase. The core inflation rate, which excludes volatile food and energy prices, is expected to rise by 1.5% compared to the previous year, reflecting persistent inflationary pressure.

Investors anticipate that the Bank of Canada may cut interest rates by another 25 basis points. However, if inflation continues to rise, the central bank might need to pause further rate cuts to curb inflationary pressures.

Source: Fxstreet