ECB Minutes in Focus as Markets Price September Hike

The European Central Bank (ECB) minutes from its July meeting are in focus today, and markets are pricing in a rate hike in September. The minutes are expected to show a bias towards a rate hike, which is already fully priced in by markets.

Meanwhile, the Bank of Japan will release nationwide July inflation data overnight. Based on the Tokyo print, economists expect CPI inflation (excluding fresh food) to edge slightly higher from 1.6% year-over-year in June.

In Sweden, the Riksbank is expected to leave its policy rate unchanged, but markets are watching for a signal that the probability of a rate hike before the end of the year has increased. This is supported by stronger growth and upside inflation surprises.