What are the main events for today?

In the European session, we will just get the final services PMIs and the Eurozone PPI data. These aren’t generally market moving releases since they are old news. The real action should be in the American session when we get the Bank of Canada rate decision and the US Job Openings data.

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

The BoC is
expected to cut rates by 25 bps bringing the policy rate to 4.25%. The recent CPI report showed some more easing in the underlying inflation
measures and the labour market data was pretty soft.

Overall, it
doesn’t look like the central bank will go for a 50 bps cut but it cannot be
completely ruled out. Including the September cut, the market expects a total
of 80 bps of easing by year end.

14:00 GMT/10:00 ET – US July Job Openings

The US Job
Openings is expected at 8.100M vs. 8.184M prior. The last report saw a slight increase but the strong downtrend that
started in 2022 remains firmly in place. The quit, hiring and layoff rates
remain low as the labour market has been softening via less hiring rather than
more layoffs.

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