In the European session we don't have much on the agenda. There's only the Eurozone CPI report but since it's the Final reading, the market won't care much. In the American session, we have the Canadian CPI report, which is going to be the main event for today.
13:30 GMT/08:30 ET - Canada October CPI
The Canadia 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.
Central bank speakers:
- 08:45 GMT - ECB's Elderson (neutral - voter)
- 10:15 GMT - BoE's Bailey (dove - voter)
- 18:10 GMT/13:10 ET - Fed's Schmid (hawk - voter)
