EUROPEAN SESSION
In the European session, we don't have anything on the agenda, so the price action might stay rangebound. The focus remains on the US-Iran war and especially on the Strait of Hormuz.
AMERICAN SESSION
In the American session, the only highlight is the Canadian CPI report. As usual, the focus will be mainly on the Trimmed Mean CPI Y/Y which is expected at 2.3% vs 2.4% prior. Such inflation figures coupled with the bleak jobs report we got on Friday would have prompted the market to price in a rate cut for the BoC by year-end.
Canada Trimmed Mean CPI Y/Y
Unfortunately, given the supply disruptions in the Strait of Hormuz and rising energy prices, the central bank could feel constrained in its ability to support the economy as rate cuts could spur another inflationary wave.
