Morning Bid Europe-Lagarde takes the spotlight as oil sits above $100
SPY•Yen and Bank of Japan outlook
And what of the yen? It stands tall at 153.39 per dollar, up 4% this month, shrugging off the rise in oil prices as traders brace for a faster pace of rate hikes from the BOJ.
In a closely watched speech ahead of next week's policy meeting, board member Kazuyuki Masu warned of broadening price pressures that have pushed underlying inflation "very close" to its 2% target, hinting at rapid rate increases.
Inflation data and Fed expectations
Data on U.S. producer prices are due later on Thursday with consumer price inflation scheduled for Friday. Analysts expect the data to play a key role in whether the Fed hikes rates at its September 15 to 16 meeting. Fed funds futures traders are pricing in about 60% odds of a rate hike next week.
Day ahead in European and global markets
Investors are perhaps starting to realise that elevated bond yields and higher oil prices are the new normal as the Middle East war spreads ahead of central bank meetings where policymakers may struggle to quell markets' inflation angst.
The European Central Bank will kick off the central bank bonanza later in the day with a widely expected rate hike, with the Federal Reserve and the Bank of Japan due next week.
What comes next will be the prime focus as ECB President Christine Lagarde takes the stage in the wake of the biggest wave of attacks on shipping in the Middle East, where the over six-month long conflict is escalating again.
The euro EUR= was steady at $1.1637 ahead of the decision, while European stock futures STXEc1 pointed to a muted open.
Brent crude futures LCOc1 were perched above $100 a barrel for the first time since July, while long-term bond yields are at highs not seen since before the global financial crisis.
