Petr Krpata, an FX strategist at ING, notes that the latest CFTC positioning data shows that net combined positions on the Canadian dollar have turned positive in July for the first time since 1Q18. 

• "All eyes today will be on the Canadian inflation report for June. According to a Bloomberg survey, headline CPI should decelerate, although all core measures (preferred by the Bank of Canada) should stay above the 2% target range mid-point. This should allow the BoC to stick to a neutral stance, keeping any USD/CAD rebound broadly limited. Today, we expect the pair to stay range-bound and consolidate below 1.3050."