While the US has seen headline inflation fall, Eurozone inflation has continued to increase, hitting a 25-year high of 8.9% year-on-year in July.
Data over the last two weeks bolstered optimism that the Fed can achieve a soft landing for the economy.
The economy’s strength faces a key test this week when July’s monthly US NFP report is released.
The busiest — and what could be the most important — week of the summer is coming up, with FED, recession and inflation under the spotlight.
The ECB is set to have its first rate hike in more than a decade against a challenging economic backdrop exacerbated by the war in Ukraine.