Canadian inflation in focus
It's Fed day and that will keep a lid on markets until the 2 pm ET decision (press conference 30 minutes later).
One market that could be moving is the Canadian dollar due to the June CPI release at the top of the hour. The consensus is a 3.2% y/y rise after a 3.6% reading in May. Keep an eye on the Bank of Canada's three core measures as well.
USD/CAD touched off 1.26 again yesterday but has faded back to 1.2566 ahead of the report.
At the same time, we get the US advance good trade balance report for June, which is expected to show an 88.0B decline. It would take a big miss on that report to move the dollar.
