Canadian CPI highlights the North American economic calendar ...Middle East

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Canadian CPI highlights the North American economic calendar
The Canadian dollar is riding the wave of broad US dollar weakness at the moment in a move to 1.3610 but it will have its own reasons to move at the bottom of the hour.That's when the July CPI report will be released. Expectations are for y/y inflation to continue to fall, this time down to 2.5% from 2.7%. That's despite what's expected to be a +0.4% m/m reading.The three measures of core inflation -- median, trim and common -- will also be a factor in the market reaction. They're expected to tick slightly lower on a y/y basis.For the Bank of Canada ,the market is pricing in a 99% chance of 25 bps on Sept 4 with a slight chance of 50 bps. Through year end, 72 bps are priced in with 151 bps p

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