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Related tickers and likely impact
USD/CAD
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/16/2026 | 1.41389 |
| Change that session | -0.32% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Businesses expect Canada inflation rate to remain above 3 %
The Bank of Canada's quarterly Business Outlook Survey, released Monday, shows many businesses expect Canada's inflation rate to stay above 3% over the next two years, and about half plan to pass on some or all cost increases linked to the Iran war and tariffs. Inflation rose to 3.1% year over year in September from 3% in August, mainly due to higher energy prices. In the companion Canadian Survey of Consumer Expectations, households' median expectations were 4.03% for the next year and 3.88% for the next two years, with tariffs cited as the top factor. Firms' outlooks worsened and inflation expectations rose after trade talks with the U.S. broke down on Aug. 22, but they are not expected to return to levels seen at the start of the trade conflict in March 2025 or the April oil-price peak. The Bank of Canada will announce its interest rate decision on Oct. 28, and these surveys are among the inputs for that decision.
- Canada inflation rate rises above 3 % on higher energy prices
Statistics Canada reported that consumer prices rose 3.1% year over year in September, up from 3% in August, mainly because energy prices were 19% higher than a year earlier. Grocery prices rose 1.7%, the smallest annual increase since May 2024, and shelter prices rose 1.8%. Core measures were steady, with CPI-median at 1.9% and CPI-trim at 1.8%, a bit softer than economists expected. Bank of Canada Governor Tiff Macklem warned that the risk of inflation broadening and becoming more persistent has risen, while BMO and TD still expect rates to stay on hold through 2027, though BMO's Robert Kavcic said a rate hike is possible.
- Sentiment improved , but new tariffs weigh on business outlook : BoC report
The Bank of Canada's business outlook survey found average business sentiment improved in the third quarter, though firms remained worried about rising costs and the war in the Middle East. About three-quarters of the interviews, however, took place before trade talks between Canada and the United States broke down at the end of August and Canada announced new counter-tariffs. Afterward, firms pointed to new U.S. tariffs on some goods and Canadian counter-tariffs as weighing on their outlooks, and the bank said tariffs are dampening sentiment, weakening export and investment prospects, and pushing up costs and prices. A separate consumer survey found long-term inflation expectations rose to match short-term ones, and consumers reported better financial health than last quarter, though high prices and economic uncertainty still weigh on them. The bank's next rate decision and monetary policy report are due Oct. 28.
- Bank of Canada could still hike rates in 2026
Bank of Canada Governor Tiff Macklem sounded hawkish in an interview at an International Monetary Fund meeting, leading economists to suggest a rate hike could still come in 2026. Canada's headline inflation rose to 3.1% year over year in September, slightly below the 3.2% estimate, driven by higher gasoline prices, and has been above the bank's 1–3% target for eight of the past nine months. Core inflation slowed to 1.9% month over month (from 2%) and 1.8% year over year (from 1.9%), while the benchmark rate has been held at 2.25% for the past seven meetings. Bank of Montreal said markets had leaned toward a hike, but a tame core reading won't necessarily stop the bank as it stays focused on headline inflation above 3%. Royal Bank of Canada expects the bank to hold through the rest of the year and hike next year, given job losses in August and September, while KPMG Canada expects a hold in October with a possible hike as soon as December.
- Financial markets betting on BoC rate hike next week despite subdued inflation data
Financial markets have begun pricing in a Bank of Canada rate hike next week, giving more weight to Governor Tiff Macklem's hawkish remarks than to September inflation that came in better than expected. Statistics Canada reported annual inflation rose to 3.1% from 3%, driven by a 6.1% monthly jump in gasoline prices, while excluding energy it eased to 2.2%. Swap markets priced about an 80% chance of a quarter-point hike at the Oct. 28 decision, up from roughly 35% on Friday, and several Bay Street forecasters switched to calling for a hike, though it remains a minority view. Royce Mendes of Desjardins said central bankers can no longer look through the inflationary impact of high energy prices, while the BoC's two preferred core measures fell to 1.9% and 1.8%. Macklem said that if oil stays around US$100, inflation would gradually drift up from 3%, and the bank will weigh whether inflation returns to target on its own or whether rates must rise.
- CP NewsAlert : Higher gas prices drove inflation up to 3 . 1 % in September : StatCan
Statistics Canada said annual inflation rose to 3.1% in September, led by a 27.8% jump in gasoline prices from a year earlier as the Middle East war kept pushing up gas prices, despite the switch to cheaper winter gas. Excluding gasoline, consumer prices rose 2.2%, while fuel oil surged 57.8%, hitting Atlantic Canada hard where many homes are heated with oil. Grocery inflation slowed to 1.7%, its smallest yearly increase since May 2024, as fresh vegetables fell 2.9% and sugar and confectionery dropped 2.7%, while beef rose 8.7% after 11% in August. Shelter prices rose 1.8%, up from 1.5% in August, with mortgage insurance up 4.9% and home maintenance and repair costs up 1.2%.
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- Sandisk, Datadog, Amazon Lead S&P 500 As AI Stocks Rebound
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- Tesla Rises on a Foundry Agreement With Intel as JPMorgan Upgrades the Stock
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- What Crypto Bear Market? All of These Cryptocurrencies Have Skyrocketed in Value This Year
Bitcoin is down nearly 10% year-to-date, Ethereum is down 20% and XRP is down 30%, but several altcoins have risen sharply in 2026. Hyperliquid (HYPE) is up 210% for the year with a market cap of $20 billion, helped by the launch of spot ETFs, and Zcash (ZEC) is up 128%, with Grayscale's spot Zcash ETF attracting more than $500 million in under 30 days. NEAR Protocol, repositioned for the AI agent economy, is up 240% in 2026 but still down 75% from its January 2022 all-time high. Venice Token (VVV) is up 1,300% this year with a market cap just above $1 billion. The author favors Hyperliquid, citing its popularity overseas, the recent opening of the U.S. market to perpetual futures, and implicit support from the Trump administration.
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