In the European session today, there isn’t much on the schedule. The only thing to watch out for is the Eurozone CPI report, but since it’s the Final reading, it may not have a big impact on the market. Moving on to the American session, the main event for today is the Canadian CPI report.
At 13:30 GMT/08:30 ET, the Canada October CPI will be released. The year-on-year (Y/Y) figure is expected to come in at 1.9% compared to the previous reading of 1.6%, while the month-on-month (M/M) figure is forecasted to be at 0.3% versus -0.4% prior. Investors will be paying close attention to the underlying inflation measures, with the Trimmed Mean CPI Y/Y expected to remain at 2.4% and the Median CPI Y/Y to increase to 2.4% from 2.3% previously.
The Bank of Canada (BoC) is currently focusing more on economic growth as the inflation rate has been within the target range for several months while economic activity has slowed down. The market is pricing in a 35% chance of another 50 basis points cut in December, so if the inflation readings come in lower than expected, this could increase the likelihood of a rate cut.
In addition to the Canadian CPI report, there will be some central bank speakers to watch out for:
– At 08:45 GMT, ECB’s Elderson (neutral – voter) will be speaking.
– At 10:15 GMT, BoE’s Bailey (dove – voter) is scheduled to speak.
– At 18:10 GMT/13:10 ET, Fed’s Schmid (hawk – voter) will also be giving a speech.
Overall, today’s key events revolve around the Canadian CPI report and central bank speakers, which will provide important insights into the current economic landscape and potential monetary policy decisions. Investors and traders will be closely monitoring these developments to make informed decisions in the financial markets.
