EUROPEAN SESSION

In the European session, we don’t have much on the agenda other than a couple of low-tier releases like the German PPI and Eurozone Construction Output. None of the data is going to change anything for the ECB at this point. 

The focus remains on US-Iran headlines with a US official saying that the US is planning for a wider war and that the Pentagon is increasing the number of military aircraft in the Middle East. This is keeping the markets in a risk-off sentiment as oil prices continue to surge, reigniting inflation and growth worries. 

AMERICAN SESSION

In the American session, we have the Canadian CPI report. Headline CPI Y/Y is expected at 2.9% vs 3.2% prior, while the Trimmed-Mean CPI Y/Y is seen at 2.0% vs 2.0% prior. This is June’s data, so it’s already stale given the renewed conflict in the Middle East and the closure of the Strait of Hormuz. 

Canadian core inflation is right at the 2% mid-range target and the Bank of Canada is sounding reluctant to raise interest rates without clear signs of inflation broadening out. 

This article was written by Giuseppe Dellamotta at investinglive.com.