It’s going to be kind of a synthetic Sunday today given the empty calendar. We have just a few low tier releases like the Canadian PPI and the US Leading Economic Index. There’s also the BoC Business Outlook Survey but it’s very unlikely that it will change anything for the central bank or the market at this point.
Therefore the price action might be either rangebound or we could just keep on going for inertia based on last week’s releases which saw the US inflation reports missing expectations while the activity data surprised to the upside. Interest rates expectations for the Fed are now pretty much back to where we were before the inflation data, that is around 47 bps of easing by year-end. The Fed is not expected to cut at the upcoming meeting.
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This article was written by Giuseppe Dellamotta at investinglive.com.