ECB Minutes in Focus as Markets Price September Hike

The European Central Bank (ECB) is set to publish minutes from its July meeting, where policy rates were left unchanged. Markets expect a bias towards a rate hike in September, which is already fully priced in.

In Japan, inflation data for July will be released overnight, with markets expecting CPI inflation to edge slightly higher at 1.6% y/y. The Bank of Japan's cautious hiking cycle remains in place due to government energy subsidies and modest underlying inflation.

In Sweden, the Riksbank is expected to leave policy rates unchanged, but will signal an increased probability of a rate hike before year-end due to stronger growth, upside inflation surprises, and higher energy prices.