The highlight of next week's economic calendar will be the US inflation report. Economists and investors expect the downward trend that began in July to continue. If the data lives up to expectations or inflation slows faster than forecasted, the likelihood that the Fed will slow down the pace of policy tightening will increase. In general, the event will likely have a positive impact on asset prices (in particular, risk assets, cyclical currencies and gold), so the bullish sentiment that we saw on Friday may continue into the beginning of next week.

The meeting of the Bank of England will take place on Thursday. After the ECB, the bar to not disappoint the market is high: the bank will have to convince investors that the tightening policy will continue, otherwise there will be an incentive to search for yield elsewhere. The market's attention will be on the distribution of votes: how many officials voted to raise the rate, how many voted to leave it at the same level. Market consensus expects the rate to remain unchanged at 1.75%.

On Friday, the EU statistics authority will put out a preliminary estimate of inflation in the Eurozone for August. The data will matter as the ECB made it clear at the meeting that it allows further rate hikes. If inflation proves to be persistent (9.1% is expected, as in July), the chances that the ECB will continue to hike interest rates this year will increase, which could lead to a new leg of EURUSD strength.