This Week Is All About US CPI: 3-Minute MLIV

• Strong US NFP data suggests the labor market won't deter the Fed, but upcoming CPI is crucial for September hike bets, with a hot report likely sealing a hike.
• The ECB is expected to hike rates this week, with market focus shifting to future guidance and the impact of energy prices on policy, as economists and markets diverge on further hikes.
• The Japanese Yen is influenced by potential intervention (Japan selling Treasuries) and repatriation flows, but the Bank of Japan is viewed as a reluctant hiker, limiting its potential as a channel for further Yen gains.

The discussion covers upcoming central bank decisions and key economic data, focusing on the US Fed's response to strong labor data and upcoming inflation reports, the ECB's expected rate hike and future guidance amidst energy market concerns, and factors influencing the Japanese Yen, including potential intervention and the Bank of Japan's cautious stance.