Statistics Canada is set to release its latest inflation report for October, with forecasts suggesting that the overall inflation rate might rise to 1.9% month-on-month. Additionally, the core inflation rate, which excludes volatile food and energy prices, is expected to remain stable compared to the previous month.

Investors are closely monitoring these inflation figures, as they could have a direct impact on the Canadian dollar, particularly regarding the Bank of Canada's stance on potential interest rate cuts in the future.

Although inflation has edged slightly higher, it remains below the Bank of Canada's 2% target. The primary driver continues to be the increase in service costs, including food prices, as domestic demand has seen a modest expansion.

Source: Fxstreet