This week brings two key economic announcements. The first comes on Wednesday from the US, where inflation data will be released. Economists expect CPI (YoY) to increase by 0.4% to 4.2%. As a result, the market is now pricing in at least one US rate hike by year-end.
On Thursday, the ECB will announce its main refinancing rate, with economists expecting a 25 bps rate hike, taking the rate to 2.40%.