Europe's Busy Data Docket Sets Stage for Market Volatility

Today's European trading session will be a packed one, with a mix of economic and inflation numbers being released. The data is expected to continue driving market focus, particularly on the European Central Bank (ECB) decision earlier this month to pause interest rate hikes.

The ECB has priced in around 64% odds of taking action again in September, with around 38 basis points of rate hikes expected by year-end. However, any surprises from today's data could shift market expectations.

France will release its Q2 preliminary GDP data at 0530 GMT, followed by Spain's Q2 preliminary GDP and July CPI figures at the same time. Germany's Q2 preliminary GDP, German states' July CPI, and Italy's Q2 preliminary GDP are also due out at 0800 GMT.

At 0900 GMT, the Eurozone will release its Q2 preliminary GDP and July final consumer confidence and economic confidence numbers. The Bank of England (BOE) will announce its monetary policy decision later in the session, with BOE Governor Andrew Bailey set to hold a press conference at 1130 GMT.

Additionally, Germany's July preliminary CPI figures are due out at 1200 GMT. With month-end shenanigans also on the radar, today promises to be a busy day for markets.