We had no notable data release in the European session today. Overall, it's been a quiet session but we had some short-term risk aversion at some point triggered by the news that Ukraine striked Russia with the long range ATACMS missiles.

Elsewhere, we had some BoE's members speaking before the UK Treasury Committee but we haven't got anything new in terms of forward guidance. The central bank is planning to move rates down gradually but it's willing to move faster in case economic conditions warrant such a move.

In the FX market, we have the US Dollar continuing to consolidate around the recent highs as the market looks fine with the current pricing of three rate cuts by the end of 2025 and might need stronger reasons to price out some more.

Equity markets are down on the day potentially due to the risk aversion moves triggered by the Ukraine news, while bonds and gold are up.

In the American session, the focus will be on the Canadian CPI report. The Canadian CPI Y/Y is expected at 1.9% vs. 1.6% prior, while the M/M figure is seen at 0.3% vs. -0.4% prior. The focus will be on the underlying inflation measures with the Trimmed Mean CPI Y/Y expected at 2.4% vs. 2.4% prior, while the Median CPI Y/Y is seen at 2.4% vs. 2.3% prior.

The BoC is now focused on growth as the inflation rate has been inside the target band for several months while economic activity slowed down. The market is pricing a 35% chance of another 50 bps cut in December, so lower than expected inflation readings will likely raise those probabilities.