PREVIOUS TRADING DAY EVENTS 19 Sep 2023

The annual inflation rate for Canada increased to 4.0 from 3.3. We all experienced a significant rise in the price of Oil and gasoline and the increase obviously is attributed mainly to that. The central bank may consider raising interest rates yet again. The annual rate, the highest since the 4.4 reported in April, is double the Bank of Canadas 2 target. 

We have got to avoid overly strident opinions that the bank is done with rate hikes and be more circumspect, follow the evidence, said Derek Holt, vice president of capital markets economics at Scotiabank. I still think we need to leave the door very much open to further rate hikes, plural.

Bank of Canada Deputy Governor Sharon Kozicki Underlying inflation is still well above the level that would be consistent with achieving our target of 2 CPI inflation, she said.

Bank of Canada Governor Tiff Macklem, noting an increase in oil prices, on Sept. 7 predicted that headline inflation is going to go up in the near term before it eases.

The central bank held its key overnight interest rate at 5 on September 6th but said it could raise borrowing costs again should inflationary pressures persist.

Source httpswww.reuters.combusinessretailconsumercanadainflationratejumps40aughighergasprices20230919

Winners vs Losers

Silver is still leading the winners this week with 0.8 gains. 
The month finds USDJPY and USDCHF on the top with 1.74 and 1.67 respectively.

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