CPI due at the bottom of the hour
Initial jobless claims and Canadian new housing prices will be on the economic calendar at the same time, but all eyes will be on August US CPI.
The Fed is desperately hoping to see some inflation in order to justify all the hawkish talk over the past 18 months. At best there will be a slight uptick from low levels, but it would be a start and it would be a catalyst for the US dollar.
August CPI is forecast to rise 1.8% y/y compared to 1.7% in July.
In month-over-month terms, that's a 0.3% rise.
On the core side, inflation is forecast to slow to 1.6% y/y from 1.7% in July. That's +0.2% m/m.
The market will be keeping a close eye on wage numbers even though there are no consensus estimates. Prior average weekly earnings were up 1.1% y/y with hourly earnings up 0.7%.