Canadian CPI kicks off the agenda

The RBA cut rate earlier today and the market is sensing that the Bank of Canada will continue to do the same. Their next meeting is June 4 and market pricing is now at 65% for a cut.

A big swing in that could come at the bottom of the hour with Canadian inflation data via the CPI report for April. The consensus is for a 0.2% m/m decline on the headline to knock the y/y all the way to 1.6% from 2.3%. What could keep the BOC sidelined is hotter core number with the median measure expected steady at 2.9% and trim forecast to tick up to 2.9% from 2.8%.

This article was written by Adam Button at www.forexlive.com.