STIR: Repo Reference Rates

• The Canadian dollar stands out as one of the best G10 FX performers on Tuesday, with the latest above-estimate inflation data weighing on USDCAD (-0.07%) since the release. Initial price action saw the pair move down to a session low of 1.4014, with spot then settling around 10/15 pips off the lows. CADJPY has risen an impressive 1% on the session, eroding a solid portion of last week’s downswing.
• The Bank of Canada's preferred core measures remained elevated and around the top of its 1% to 3% target band. As noted above, the rise in the median/trim average measure was notable, at a 5-month high of 3.15% Y/Y in September vs median expectations of a decline to 3.0%.
• For USDCAD, the move lower narrows the gap to initial support at the 20-day EMA, which lies at 1.3972. However, it is worth highlighting that moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights remain on 1.4111 resistance, the Apr 10 high.
• Canada August retail sales data will be released on Thursday, the last tier one release before the BOC decision on Oct 29.

BNP (19th June) 62/72RR, bought the call for 0.83 in 2k.

• MNI: US REDBOOK: OCT STORE SALES +5.4% V YR AGO MO
• US REDBOOK: STORE SALES +5.0% WK ENDED OCT 18 V YR AGO WK