American FX Outlook: Canada’s inflation and Fed speakers are headliners of Friday

What you need to know before markets open:

• Inflation in Canada is expected to bounce back in January. With the base effect suggesting the year-to-year deceleration in inflation to 1.5% y/y.
• The Federal Reserve Bank releases its biannual Monetary Policy report and although it is rarely an immediate market mover, the outlook for monetary policy is of interest for all market participants.
• There is a set of Fed speakers scheduled for Friday including regional Fed presidents from Boston, New York, Cleveland and San Francisco most of them speaking at the Chicago Booth School of Business event organized in New York.

Friday’s market moving events

• The Bank of Canada’s core inflation is expected to rise 0.7% m/m in January while rising 1.2% y/y.
• The US Federal Reserve will release its biannual Monetary Policy report at 16:00 GMT.
• Boston Federal Reserve Bank President Eric Rosengren is scheduled to to participate in a discussion on the report "A Skeptical View of the Impact of the Fed's Balance Sheet" at the 2018 U.S. Monetary Policy Forum Annual Conference held by the University of Chicago Booth School of Business,in New York at 15:15 GMT.
• New York Federal Reserve Bank President William Dudley is scheduled to participate in a discussion of a U.S. Monetary Policy Forum Report about the Federal Reserve's Balance Sheet at the 2018 U.S. Monetary Policy Forum Annual Conference held by the University of Chicago Booth School of Business, in New York at 15:15 GMT.
• Cleveland Federal Reserve Bank President Loretta Mester is also scheduled to participate in "A Review of the Objectives for Monetary Policy" panel at the U.S. Monetary Policy Forum held by the Initiative on Global Markets of the University of Chicago Booth School of Business, in New York at 18:30 GMT.
• ECB executive board member Benoit Cœuré is scheduled to participate in a panel discussion on a review of the objectives of monetary policy during the 2018 US Monetary Policy Forum organized by Chicago Booth in New York at 18:30 GMT.
• San Francisco Federal Reserve Bank President John Williams is scheduled to speak on the "Outlook on the Economy and the Implications for Monetary Policy" in Los Angeles at 20:40 GMT.

Major market movers

• The US Dollar is steady to higher On Friday as benchmark US Treasury yields eased off a bit, but the US Dollar is still set to close the week stronger against the majors.
• Only the upside surprise in Canada’s inflation might recover CAD from current lows.

Earlier in Asia/Europe

• Japan’s inflation excluding fresh food rose 0.9% over the year in January.
• German Q4 GDP rose 0.6% Q/Q and 2.3% y/y, meeting the market expectations.
• The Eurozone inflation decelerated to 1.3% y/y in January from 1.4% y/y in December while core inflation rose 1.0% y/y.