GBP stays firmly strong as BoE may raise interest rates in November, USDCAD fell to the 3-month low after inflation data

GBPUSD hovers near its Tuesday peak this morning, given the expectations that the Bank of England will hike interest rates as soon as in November to curb inflation. The pair currently trades at 1.3810 at press time. On the other hand, the Fed is widely expected to announce the beginning of asset tapering at its meeting in November 2021. However, it is not expected to begin interest rate hikes until 2022. Commodity currencies such as AUD and NZD continue to climb, supported by the strong oil prices.

Canadian CPI data were released yesterday, sending the USDCAD to its lowest level in three months. The monthly CPI came in at 0.2%, above the 0.1% consensus. The annual growth rate was 4.4%, versus the expectation of 4.3%. Canada’s rates are currently at 0.25%, and the inflation number may cause the BoC to rethink its rate plan.