| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 08:00 | Eurozone | Current account, adjusted, bln | June | 37.6 | 37.0 | 50.5 |
| 09:00 | Eurozone | Harmonized CPI, Y/Y | July | 2.5% | 2.6% | 2.6% |
| 09:00 | Eurozone | Harmonized CPI ex EFAT, Y/Y | July | 2.9% | 2.9% | 2.9% |
| 09:00 | Eurozone | Harmonized CPI | July | 0.2% | 0% | 0% |
CAD strengthened against most of its major rivals in the European session on Tuesday as investors looked for the release of Canada’s inflation data for July later in the day, which could influence markets’ expectations for additional interest rate decrease by the Bank of Canada this year.
Statistics Canada will release the crucial consumer price index (CPI) figures at 12:30 GMT. The Canadian headline CPI is expected to show a 2.5% YoY gain in July, down from 2.7% YoY in June. This would mark the lowest annual inflation rate since March 2021 (2.2%). Meanwhile, the BoC’s preferred inflation metric - the trimmed-mean core CPI - is anticipated to show a 2.8% YoY rise, down from 2.9% in the previous month.
If the July CPI data match economists’ expectations, confirming that inflation continues cooling, this will reinforce markets’ bets on another 25-basis point rate cut at the BoC’s September 4 meeting. It would be the third consecutive gathering in which the Canadian central bank’s policymakers have decided to reduce its benchmark rate.