The main event in the European session today was the release of the UK labour market report. The data beat expectations and after some tentative price action, led to a rally in the pound.

We also got the German ZEW which came out on the softer side but the expectations index improved. That didn't help the euro though as it continues to trade tentatively into the ECB decision on Thursday.

In the markets, the most notable mover has been crude oil as it extended the fall triggered by late yesterday's news of Israel limiting the counterstrike to military targets.

In FX, we continue to see tight ranges although the bullish momentum in the US Dollar looks to be exhausted as the market might need more to price in a more "hawkish" path for interest rates than the current Fed's projections.

In the equity space, the S&P 500 and the Nasdaq are consolidating around yesterday's highs. We haven't got any bearish catalyst in the meantime, so the current uptrend will likely remain intact.

In the American session, the main event will be the release of the Canadian CPI. The market is pricing in a 48% probability of a 50 bps cut at the upcoming meeting. Soft data will likely seal the 50 bps cut, while higher than expected figures might trigger a relief rally in the CAD.