As it’s usually the case for Mondays, the calendar today is prett empty. In the European session we will get the Eurozone Industrial Production data but that’s not a market moving release and it won’t change anything for the ECB.
In the American session, we get the BoC Business Outlook Survey and we will hear from Fed Chair Powell again who’s going to have a discussion with David M. Rubenstein at the Economic Club of Washington, D.C.
Powell spoke already last week as he testified to Congress and he kept his usual neutral tone trying not to provide any forward guidance. The market has already priced in a rate cut in September, so all else being equal, the Fed will deliver the first cut in September.
Nonetheless, the market will want to see if the latest US CPI report has given the Fed a bit more confidence and if we start to see them changing their language to a more dovish leaning.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
