Three dissents, the most on a single Fed decision since 2016, told markets more than Wednesday's statement did. The Bank of Canada does not meet again until September 2, and the transmission from Wednesday's vote is already reaching Canadian yields.

CME FedWatch odds for this afternoon's Fed decision have swung between 10.7% and 46.5% over two weeks. Odds for September have sat near 80% for most of that same stretch. The gap between a noisy number and a settled one is the real story heading into 2 p.m. ET.

The CRA confirmed the prescribed rate for family income splitting loans holds at 3% for a fifth straight quarter. While Washington debates a hike this afternoon, the Canadian Treasury bill auctions that actually set this number show no sign of following.

CME FedWatch prices roughly a one-in-three chance of a hike Wednesday, nearly unchanged from last Thursday's peak despite oil's steepest three-session retreat since the war began. Canada's own inflation picture is calmer, but Canadian yields are not insulated from Wednesday's outcome.

Mortgage-linked bond yields are easing this week as oil's war premium unwinds, but the CRA's income-splitting rate is anchored to a completely different curve that has not moved in a year.

The Federal Reserve's July meeting had become a genuine contest, with rate hike odds climbing on energy driven inflation fears. A seven per cent oil price collapse Monday morning arrives less than 48 hours before the vote, the same day the Bank of Canada's own deliberations summary from its sixth consecutive hold is released.

Between Wednesday's TSX record and Friday's oil reversal, a bigger story took shape: the Federal Reserve and the Bank of Canada are now pulling in opposite directions, and a fifty percent tariff lands in the gap between their next two decisions.

Headline CPI eased to 2.8% on a temporary drop in gasoline prices. With Brent back above $100 and new tariffs landing before the Bank's next decision, the disinflation may not survive July.

The Geopolitical desk this morning called a successful strike on a laden tanker the tail risk, not the base case. By early afternoon the Houthis had claimed exactly that, and gold's failure to rally on it is the tell that this has become an inflation story rather than a fear story.

Market-implied odds of a July 29 Fed hike spiked past 46% and have since fallen under 17%, but oil is still climbing, and that leaves Governor Macklem facing the same inflation calculus with less certainty about what Washington does first.

The prescribed rate has held at three per cent for five straight quarters, the lowest sustained level since 2022, and Governor Macklem's own comments this month put a real hike scenario back on the table.

The Bank of Canada held for a sixth straight meeting even as headline inflation eased, while a Federal Reserve under a new chair who refuses to signal its next move heads into its own decision next week.

The Bank of Canada held for a sixth straight meeting, but the five-year bond yield that actually prices fixed mortgages just touched a two-month high, and the gap matters most for anyone renewing in the next eighteen months.

Markets are pricing a December Fed increase with rising conviction as energy driven inflation persists south of the border, but Canada's own data point the other way, and the July 29 meeting is the first real test of the repricing.

June's CPI print gave the Bank of Canada exactly the improvement it said it was waiting for when it held on July 15. Five days later, the sector most exposed to that decision sold off harder than any other on the index, and traders are still pricing a hike by year end, not a cut.

Five days after the July 15 Monetary Policy Report built its inflation forecast on that assumption, a weekend that pushed the conflict's confirmed U.S. death toll to 17 sent WTI to a fresh high, testing the one number the Bank said would determine whether this hold turns into something else.