In US, San Francisco Fed president John Williams said overnight again and noted he saw another rate hike "sooner rather than later". He said that "in the context of a strong domestic economy with good momentum, it makes sense to get back to a pace of gradual rate increases, preferably sooner rather than later." And, "if we wait until we see the whites of inflation's eyes, we don't just risk having to slam on the monetary policy brakes, we risk having to throw the economy into reverse to undo the damage of overshooting the mark." He warned that "creates its own risks of a hard landing or even a recession."
Released yesterday, in its account of the monetary policy meeting in July, ECB warned that uncertainty has increased since UK voted to leave EU on June 23. The central bank believed that this "could affect the global economy in deeper and less predictable ways than through the direct trade channel". Yet policymakers believed it was prudent to spend more to gauge its impacts and as a result left the deposit rate unchanged at -0.4% and the main refinancing rate at 0%. ECB also maintained the asset purchase of 80B euro per month until March 2017 or beyond, if necessary. More in ECB Cautioned over Heightened Uncertainty after Brexit.
On the data front, German PPI and UK public sector net borrowing will be released in European session. Canadian data will be the focus in US session as retail sales and CPI are featured.