It's a blockbuster start to the day for North American traders with two major releases.
The US retail sales report is forecast to fall 0.3% with a flat reading ex-autos and the control group up 0.2%. There haven't been clear signs of consumer weakening but some sentiment measures have deteriorated and airlines have flagged a dip in demand.
At the moment, the market is pricing in 68 bps in easing through year end.
In Canada, the CPI report for June is due and it's a critical one with the market priced for an 83% chance of a cut next week. Those numbers have crept up but I don't think they're as solid as they look, especially if CPI runs hot. The consensus is 0.0% m/m and +2.8% y/y.
