Will the Strength of the U.S. Dollar and the Canadian Dollar Shift Ahead of the Canadian CPI Release?
19.10.2026
- Canada's September Consumer Price Index (CPI)
- U.S. October NAHB Housing Market Index
On the 16th, the U.S. dollar weakened against major currencies. In addition to fading expectations of further interest rate hikes by the Fed, U.S. Treasuries were bought amid concerns over funding and credit risks at AI-related companies, causing the dollar index to drop to the 101.6 level by the end of trading on the 16th.The dollar-yen exchange rate also fell to around 157.80 yen. Today, the Dollar Index is trading around 101.8, while the dollar-yen rate is hovering around 158.10 yen.
European currencies rose against the dollar on the 16th, with both the euro and the pound gaining ground. The euro rose to the $1.1250 level, while the pound climbed to the $1.3350 level.At the start of the week, protests in France over rising living costs weighed on market sentiment, causing the euro to fall slightly to around $1.1230. Meanwhile, the pound has remained firm in the $1.33 range, highlighting a divergence in the strength of European currencies.
Today’s economic indicators include Canada’s September CPI at 9:30 p.m. and the U.S. October NAHB Housing Market Index at 11:00 p.m.The Canadian CPI is expected to show a 0.2% month-over-month increase and a 3.2% year-over-year increase, marking an acceleration from the previous month. Even after China’s GDP came in above expectations, price movements in major currencies have remained limited; we will be watching to see if the CPI data released during North American trading hours clarifies the relative strength of the Canadian dollar versus the U.S. dollar.
Author: Keisuke Sakurai
