... The regulator will publish a detailed overview of the economic situation and inflation trends in the region, clarifying the ECB's rationale after its last meeting. 14:00 (UK): Bank of England's interest rate decision and monetary policy report. The BoE is likely to continue its fight against inflation—its decision and rhetoric will affect pound dynamics and sentiment in European markets. 15:30 (USA): Initial Jobless Claims (week ending August 2). Weekly labor market indicator; persistently low ...

... the hearings was the latest Financial Stability Report, but traders were more interested in any comments from Bailey regarding inflation and interest rates. Inflation in Britain remains one of the highest in the G7, and markets are pricing in further BoE rate hikes this year. If Bailey's speech indicated concerns about inflation and a commitment to tightening policy, the pound could strengthen, and British government bonds (yields) could rise. However, a softer tone (for instance, mentioning signs ...