The Canadian dollar steadied around 1.4 per US dollar hovering near six-month lows as investors digested hotter-than-expected inflation and fresh trade headlines while the US dollar recovered. Headline consumer prices rose to 2.4% in September versus 2.3% expected, the strongest reading since February. The mean core inflation gauge stayed near one year highs at 3.1% and came in above the 3% consensus, narrowing the Bank of Canada’s room to ease policy. On the trade front, reports that a US–Canada trade pact covering steel, aluminium and energy could be ready for leaders to endorse at the upcoming APEC summit improved near-term export visibility and supported the trade outlook. Meanwhile, the US dollar has rebounded on hopes for the end of the government shutdown and trade agreements hopes with China.