It was a pretty uneventful morning in world market and I was wondering what to make for the North America headline until a few minutes ago. CAD has fallen out of bed after traders were rudely awakened by a sharp slowdown in Canadian retail sales in August. Continued sluggishness suggests the Bank of Canada is unlikely to raise interest rates any time soon even if the US economy picks up and that it the central bank may continue to let the loonie drift lower keeping with its hands off the dollar approach. CAD may remain active through the day today with a Bank of Canada decision and more importantly, the statement and monetary policy report due at 10:00 am EDT this morning and a press conference with Governor Poloz about an hour later. GBP is also getting knocked back today after Bank of England minutes showed growing concern among MPC members that the slowdown in Europe could drag on the UK as well and that raising rates too quickly could leave the economy vulnerable to external shocks. A more cautious outlook for the UK economy pretty much rules out a rate hike early next year with next summer now more likely after the UK election and around the same time the US is expected to start hiking rates. USD, meanwhile is on the rebound again. Even though there has been no change in opinions about the Fed’s monetary policy direction from US consumer prices, a more neutral Bank of England and potentially more dovish Bank of Canada has made the Fed more hawkish relative to other central banks. The resurgence in USD has the greenback higher today against all major paper currencies, especially NOK and against precious metals as well. Stock markets have settled down a bit for now with European indices rising again but at a slower pace than yesterday while US indices are mixed. Yahoo and Boeing could see some interest today on better than expected results. Railroads may come under pressure between soft earnings out of CN and Norfolk combined with the ongoing reaction to failed merger talks between CP and CSX. Corporate News Boeing $2.14 vs street $1.97, raises FY 2014 guidance to $8.10-$8.30 from $7.90-$8.10 Yahoo! $0.52 excluding items vs street $0.32, revenue $1.09B above street $1.05B guides Q4 EBITDA to $340-$380M vs street $348M Norfolk Southern $1.79 vs street $1.83 Canadian National $1.04 vs street $1.05, maintains guidance for the year Celestica $0.26 vs street $0.24, guides adjusted EPS $0.21-$0.27 vs street $0.26, president and CEO to retire end of 2015 Economic News Economic reports released overnight and this morning include: UK Bank of England meeting minutes 7-2 vote on interest rate, two hawkish dissenters, no change US consumer prices 1.7% vs street 1.6% US core CPI 1.7% as expected Canada retail sales (0.3%) vs street 0.0% Canada retail sales ex autos (0.3%) vs street 0.2% Australia conf board leading index (0.2%) vs previous 0.5% Australia Westpac leading index (0.1%) vs previous 0.1% Australia consumer prices 2.3% as expected vs previous 3.0% Japan trade balance (¥958B) vs street (¥780B) Japan exports 6.9% vs street 6.5% Japan imports 6.2% vs street 2.7% Economic reports due later today include: 10:00 am EDT Canada interest rate 1.00% no change expected 10:00 am EDT Bank of Canada monetary policy report 11:15 am EDT Bank of Canada Poloz and Wilkins press conference 15:30 am EDT Bank of Canada Poloz and Wilkins testimony to Commons committee 10:30 am EDT US crude oil inventories street 3.0 mmbbls