US PCE and Canadian GDP coming up next

Canadian GDP and US PCE on the docket

The surprise in eurozone inflation is an early test of the transitory narrative that Lagarde doubled down on yesterday.

Now it's the Fed who will be tested ahead of next week's FOMC. The market is pricing in a hike in June, which would be before a $15B/month taper would be complete.

Inflation will dictate what they do next and today's report is another step down the road. PCE inflation is expected up 4.7% y/y with core up 3.7%.

Further north, Canadian August GDP is forecast to rise 0.7%.