EUROPEAN SESSIONIn the European session, the only highlight is the monthly UK GDP data which is expected to show a 0.0% growth in July. The data is unlikely to change much for the BoE, though, as the majority of policymakers continue to exercise patience. The market, on the other hand, has been increasing rate hike bets following the surge in oil prices, with two rate hikes priced in by year-end starting in November. AMERICAN SESSIONIn the American session, all eyes will be on the US CPI report. The headline CPI Y/Y is expected at 3.4% vs 3.4% prior, while the M/M measure is seen at 0.4% vs 0.1% prior. The Core CPI Y/Y is expected at 2.4% vs 2.5% prior, while the M/M reading is seen at 0.2% vs 0.2% prior. The Core M/M measure will be the one to watch, as that's what the Fed members have been focusing on. Fed's Waller recently said that he would consider a rate hike in September if the monthly core reading surprises to the upside. Unfortunately, that was before the latest surge in oil prices, with WTI crude now trading above the $100 level. The break of that psychological level triggered a hawkish repricing across the board, with traders now pricing in a 65% chance of a rate hike at the upcoming meeting. I feel like an in-line CPI won't be enough to steer the market away from expecting a rate hike. If we go into the FOMC meeting with higher probabilities for a rate hike, then the Fed will be forced to hike just to avoid delivering a dovish surprise. CENTRAL BANK SPEAKERS14:00 GMT/10:00 ET - ECB President Lagarde (neutral - voter)17:00 GMT/13:00 ET - ECB's Lane (neutral - voter) This article was written by Giuseppe Dellamotta at investinglive.com.