Earlier in the day, we had the Australia quarterly CPI report for Q2 here. And that mostly reaffirmed rate cut expectations for next month, with the trimmed mean reading matching estimates of 2.7%. Traders were pricing in ~84% odds of a 25 bps rate cut ahead of the release, with those odds now moving up a little more to ~92%.

Coming up in Europe, we'll have a host of preliminary Q2 GDP data from France, Italy, Germany, and the Eurozone with also Spanish inflation numbers for July.

And over to US trading, we'll be greeted with the ADP employment data and US Q2 GDP data to kick things off. Thereafter, the focus turns to major central banks with the Bank of Canada and US Federal Reserve set to announce their respective policy decisions. Both are expected to keep rates unchanged but all eyes will be on the Fed, in particular Powell's press conference for any hints of a divide in opinion among policymakers. And also for any hints of September, as Trump's pressure continues to grow.

To round off the day, we'll have big tech earnings to watch out for in the form of Microsoft and Meta after the close. That will set the tone for tech shares in the second half of the week and in turn perhaps broader market sentiment as well.

Source: Forex Live