The outlook for interest rates is still positive. Canada's economy is still moving ahead, keeping expectations of higher rates alive.
If we see inflation to continue to come in on the soft side, then the market will intensify its speculation that the peak in U.S. rates is quite close.
Failure to meet market expectations here will reinforce the market perception that the peak in US rates is clear, putting the dollar under renewed pressure.
The minutes are a very important event today, with any adjustment suggesting that the peak in rates is close, as we believe it is, seen putting the dollar under further pressure.
The Fed will be pausing after raising rates in May. Sterling is going to hold up reasonably well in the near term.
The market is assuming that the ECB won't be hiking rates in the next couple of months. The way is open for the euro to decline further.