Core PCE on the agenda.

The 'soft landing narrative' will once again be put to the test today as the weeks main event is on the agenda, core PCE data from the US.

The market is so sensitive to inflation data, the number will be scrutinised to the second decimal point.

Any signs of softening inflation will likely see the 'risk on soft landing' story continue following yesterday's slightly soft US data.

Alternatively, signs of inflation being 'too sticky' will likely see the USD end the week on the front foot as 'higher for longer' once again takes hold.

In other news, a jump in inflation in the Eurozone may not alter the ECB's plans to cut rates next week. But attention will turn to future guidance and the projected number of cuts (if any) during the rest of the year.

Also today, we have GDP data from Canada, which could contribute or detract from the narrative of an imminent rate cut from Canada.

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