After another sizzling-hot inflation report out of the United States, the European Central Bank and Bank of Japan will meet against the worrisome setting of their currencies plunging. The former is expected to launch its tightening cycle, but the latter may make a surprise policy move even though it has not signalled any action. It’s looking to be an eventful week on the data front as well, as the flash PMI estimates for July and inflation numbers are due in several countries. ECB to hike by 25 bps but what will follow? There can be no doubt that the ECB is late to the game when it comes to the tightening race, but ... (full story)