In the European session, we will just get the final services PMIs and the Eurozone PPI data. These aren't generally market moving releases since they are old news. The real action should be in the American session when we get the Bank of Canada rate decision and the US Job Openings data.
13:45 GMT/09:45 ET - BoC Policy Decision
The BoC is expected to cut rates by 25 bps bringing the policy rate to 4.25%. The recent CPI report showed some more easing in the underlying inflation measures and the labour market data was pretty soft.
Overall, it doesn’t look like the central bank will go for a 50 bps cut but it cannot be completely ruled out. Including the September cut, the market expects a total of 80 bps of easing by year end.
14:00 GMT/10:00 ET - US July Job Openings
The US Job Openings is expected at 8.100M vs. 8.184M prior. The last report saw a slight increase but the strong downtrend that started in 2022 remains firmly in place. The quit, hiring and layoff rates remain low as the labour market has been softening via less hiring rather than more layoffs.
