Big day on the docket: US CPI coming up and the Bank of Canada could cut by 50 bps

The main events of the week for both the US and Canada are coming up today.

First is the US CPI report at 8:30 am ET (1330 GMT) and it comes with the market pricing in an 85% chance of a Fed cut next week and 82 bps in easing in 2025. I wrote a full preview of the report here.

After that, the focus will shift to the 9:45 am ET decision on rates from the Bank of Canada. The market is pricing a 90% chance of a 50 basis point cut as the loonie teeters near a four-year low. Here is a preview of the BOC decision. Macklem will hold a press conference at 10:30 am ET.

The final highlight comes at 1 pm ET with a 10-year Treasury auction. Yields have ticked up 2-3 bps across the curve so far today. For more, see the economic calendar.

This article was written by Adam Button at www.forexlive.com.