Price pressures in Canada unexpectedly eased in November even as core measures of consumer inflation remained sticky, leaving the door open to further interest-rate cuts in the new year but backing the central bank’s shift to a more measured approach.

Canada's annual inflation rate unexpectedly dropped by a tick to 1.9% in November, driven by a broad-based slowdown in prices, while the consumer price index was unchanged on a monthly basis, data showed on Tuesday.

Additionally, the Bank of Canada's monthly core CPI decreased 0.1%, bringing the annual core CPI inflation rate down to 1.6% from 1.7% in October. USD/CAD edged slightly lower from the multi-year high it set near 1.4300 earlier in the day. At the time of press, the pair was trading at 1.4278, rising 0.25% on the day.