The Bank of Canada is expected to cut interest rates today

Ahead of the ECB interest rate decision tomorrow, the market will be paying attention to services PMI especially for Germany and the Eurozone. Producer price index figures for the Eurozone are also due today. The fibre is currently trading at 1.0877.

The Bank of Canada is hosting its Monetary Policy Committee in the context of which it is poised to cut its 5.0 % key interest rate by 25 basis points at the back of sliding inflation which stood at 2.7% yearly in April, down from 2.9% on an annualised basis in March this year. The loonie was trading at 1.3676 ahead of the interest rate decision.

Investors will be checking out job market figures today by way of the ADP employment change which will provide insight on the number of jobs created on a monthly basis. Also the highlight of attention, services PMI will shed more light on the purported slowing down of the US economy. However, US monthly factory orders saw a 0.7% increase yesterday. Despite recent encouraging inflation data from PCE and core PCE reports, the Federal Reserve is not expected to budge under the influence of other major central banks starting to cut interest rates, but rather this institution will quite certainly maintain its inflation-centric focus. The greenback was trading at 104.24 against peers under the influence of softer economic figures.