Today’s key economic release in Canada centers around inflation data, with the headline Consumer Price Index (CPI) expected to remain steady at 1.9% year-over-year for July, unchanged from June’s figures. However, attention may pivot towards core measures, where expectations for CPI common suggest an increase to 2.7% from the previous 2.6%.

This inflation data could play a significant role in guiding the Bank of Canada’s next rate decision. As the bank continues to balance economic growth with inflationary pressures, releases such as this are crucial for market forecasting.

Market participants should prepare for heightened volatility around this announcement, as shifts in sentiment may trigger moves across currency pairs involving the Canadian dollar. Staying ahead of these shifts will be essential for traders looking to capitalize on potential opportunities.