USD/CAD Bounces After Canada September Headline Inflation Misses Forecasts at 3.1%

USD/CAD rebounded to 1.41119 after dropping to a session low of 1.4071, later settling near 1.4095 following Canada's September inflation report. Headline CPI accelerated slightly to 3.1% year-over-year from 3.0% in August, missing market expectations of 3.2% and moving just above the Bank of Canada's 1% to 3% target range. The uptick was driven by energy costs, with gasoline inflation jumping to 27.8%. However, underlying inflation moderated across the board: CPI excluding gasoline slowed to 2.2%, CPI-trim cooled to 1.8%, CPI-median eased to 1.9%, and CPI-common declined to 2.4%, reducing urgency for further interest rate hikes.