In the European session, we have a few data releases including German Retail Sales, Swiss Retail Sales, French CPI, Italian CPI and lastly the Eurozone CPI.

The Eurozone CPI is the main highlight but it shouldn’t change anything for the ECB at the moment, as the central bank has ended the easing cycle and it’s now just monitoring the economic developments. They said multiple times that they won’t react to small or short-term deviations from their 2% target.

In the American session, the only highlight is the monthly Canadian GDP which is expected at 0.0% vs 0.2% prior. The data shouldn’t change anything for the BoC at the moment as the central bank cut interest rates to the lower bound of their estimated range and signalled a potential end to their easing cycle as Governor Macklem said that the policy rate was now “at about the right level” to keep inflation close
to 2 per cent while helping the economy.

He kept a door open for further easing though in case things deteriorate too much as he added that the bank could come off
the sidelines “if there is a material change in the outlook”.

Lastly, we will hear from a few Fed speakers today as they come out of the blackout period. Fed Chair Powell’s hawkish turn is still reverberating in the markets and the market will be focused on anything that could confirm no cut at the December meeting.