Canadian dollar solid to start the day

Some chatter about Bank of Canada rate cuts is starting to work its way into the conversation, with some people talking about a move as soon as September.

Today's CPI report might add to that with the consensus calling for a dip to 1.7% y/y from 2.0% in June. That's really a shift in base effects as the jump last July rolls off. The m/m reading is forecast up 0.2%.

The BOC has three core measures of inflation, 'median', 'common' and 'trim'. They're forecast in the range of 1.8%-2.1%. With everyone looking to future economic growth, I don't see this being a big factor for the market or the BOC.

Other news from Canada includes earnings from RBC -- the country's biggest bank. They were a touch on the soft side but the CEO said North American economic conditions were still 'solid'.