What are the main events for today?

The main event in the European session was the release of the UK Employment report. The data beat expectations across the board which will keep the BoE in an uncomfortable position. Looking ahead, we have the German ZEW, the Canadian CPI report and the US-Russia talks in Saudi Arabia

13:30 GMT/08:30 ET - Canada January CPI

The Canadian CPI Y/Y is expected at 1.9% vs. 1.8% prior, while the M/M reading is seen at 0.1% vs. -0.4% prior. The Trimmed-Mean CPI Y/Y is expected at 2.6% vs. 2.5% prior, while the Median CPI Y/Y is seen at 2.5% vs. 2.4% prior.

Inflation has been inside the target band for almost a year and the BoC at the last policy decision acknowledged that absent the threat of tariffs, the risks to the inflation outlook were roughly balanced. This implies that the central bank is now in neutral stance and the pace of easing will be much slower.

The economic data out of Canada has been picking up after the aggressive easing in monetary policy and the CAD has been held back only by trade uncertainty. This uncertainty has eased recently, and the Loonie got the green light to finally appreciate.

Central bank speakers:

• 09:30 GMT - BoE's Bailey (neutral - voter)
• 14:00 GMT/09:00 ET - ECB's Cipollone (dove - voter)
• 15:20 GMT/10:20 ET - Fed's Daly (neutral - non voter)
• 18:00 GMT/13:00 ET - Fed's Barr (dove - voter)