What are the main events for today?

Today, we will finally get some notable releases. It’s the PMIs Day, so we will see how economic activity fared in July for the major economies and especially the US. We have also a central bank decision on the agenda as the Bank of Canada will release its policy setting with a rate cut widely expected.

Below you can see the expectations for the Flash PMIs:

• Eurozone Manufacturing
  PMI: 46.1 expected vs. 45.8 prior.
• Eurozone Services PMI:
  53.0 expected vs. 52.8 prior.
• UK Manufacturing PMI: 51.1
  expected vs. 50.9 prior.
• UK Services PMI: 52.5
  expected vs. 52.1 prior.
• US Manufacturing PMI: 51.7
  expected vs. 51.6 prior.
• US Services PMI: 54.4
  expected vs. 55.3 prior.

13:45 GMT/09:45 ET – BoC Policy Decision

The BoC is expected to cut interest rates
by 25 bps and bring the policy rate to 4.50%. Such expectations have been
influenced by another soft labour
market report and strengthened after the
last Canadian
CPI data where the underlying inflation
measures eased further. Including the July cut, the market expects 63 bps of
easing by year-end.

Central bank speakers:

• 12:00 GMT/08:00 ET – ECB’s Lane (dove – voter)
• 20:05 GMT/16:05 ET – Fed’s Bowman (she won’t touch on monetary policy as the Fed is in blackout period)

This article was written by Giuseppe Dellamotta at www.forexlive.com.