*In the Euro Area, CPI for August, announced today, increased by 0.6% month on month and 5.3% year on year. The previous data came at the level of -0.1% and 5.3%, respectively. In the minutes of the meeting of the European Central Bank (ECB) in July, it was stated that a new interest rate hike in September may be necessary if there is no evidence that monetary tightening is strong enough to reduce headline inflation to the 2% target.

*In the US, Core PCE for July, which we follow today, came in as expected, increasing 0.2% month on month and 4.2% year on year. The previous data showed an increase of 0.2% monthly and 4.1% annually. Headline PCE also came in as expected, rising 0.2% and 3.3%, respectively.
This data points out that the inflation trends in the USA are still on an upward trend and strengthens the possibility of the FED’s interest rate hike and keeping the interest rates high for a long time.
The US Non-Farm data, which will be released tomorrow, will be quite significant given the recent low of JOLT’s Jobs data released on Tuesday.

Agenda of the day;
19:00 Speech by ECB Member de Guindos
23:30 FED Balance Sheet