• The Canadian Dollar churned in familiar territory on Tuesday.
• CPI inflation data from Canada did little to spark faith in CAD.
• Looming Fed rate call pushes markets into standby mode.

The Canadian Dollar (CAD) settled into familiar territory in the midrange on Tuesday after unimpressive Canadian Consumer Price Index (CPI) inflation data failed to spark a bid in CAD flows. The Federal Reserve’s (Fed) rate call due on Wednesday looms large over global markets, quashing any one-sided moves in market flows.

Canada printed a raft of CPI data broadly below expectations, with August’s headline CPI figure contracting for the second time in 2024. National YoY figures also came in below expectations, and the Bank of Canada’s (BoC) own measure of core CPI inflation cooled further on an annualized basis.