Post #15498

USD/CAD Slides to September Lows as Yields Ease USD/CAD traded lower this morning, marking its lowest level since September. Downside momentum has picked up as the pair tracks softer U.S. yields, with sellers pressing into levels not seen in months. Canadian CPI YoY cooled to 2.2%, slightly below the 2.3% forecast, reinforcing the view that inflation remains contained. At the same time, Canadian 10-year yields slipped to 3.41%, moving in lockstep with the broader pullback in U.S. yields. The data backdrop remains mixed but constructive. Factory sales fell 1.0%, largely in line with expectations, while housing starts surprised to the upside at 254K, signaling underlying resilience in domestic demand. With yields easing and inflation stable, the loonie found support, even as crude prices drifted lower — a reminder that rates and macro are currently driving CAD more than oil. - Alan