UK and Canadian Inflation Rates

Overview
UK and Canadian inflation rates will be released next week. These events could provide insight into whether the Bank of England(BOE) and the Bank of Canada(BOC) decide to raise rates further.

The Details
As things currently stand, the BOE will likely pause rates, and the BOC will raise rates again. This is in line with the current inflation figures.
Next week's inflation figures - Tuesday 17th for Canada and Wednesday 18th for the UK - may give more precise direction to what the BOE and BOC decide what to do next: hike, cut, or pause.
August's inflation figure for Canada was 4.00% and 6.70% for the UK.

Things to Consider:

• If September's inflation figures are higher or the same as August's, this gives a greater chance of further rate hikes. Another rate hike from the BOC will likely strengthen the CAD. Another rate hike from the BOE will likely strengthen the GBP.
  
• If September's figures are lower than August's, this gives a greater chance of the central banks holding rates and lowering rates in the near future. This will weaken the CAD and GBP.
  
• Key CAD pairs could be EURCAD GBPCAD AUDCAD
  
• Key GBP pairs could be GBPAUD GBPCAD GBPNZD