Headline Inflation

The European Central Bank is expected to deliver a 25bp increase as euro area inflation pressure remains complicated by energy-market risk. FXCOINZ examines why the Strait of Hormuz, inflation expectations and euro weakness may shape the October and December policy debate.

Japan’s July inflation data strengthened expectations that the Bank of Japan could lift its policy rate in September. Even so, wide rate gaps with the Federal Reserve, European Central Bank and Bank of England may continue to shape the direction of major yen pairs.