Eonia money market futures dated to the European Central Bank's July 25 meeting price in around five basis points worth of interest rate cuts, up from around four bps last week.

According to analysts, this is roughly the same as saying the markets price in around a 50% chance of a 10 bps rate cut. A cut by September is fully priced in by markets.

The latest ratcheting up of rate-cut bets follows comments from ECB policymakers on Monday euro zone inflation remains unacceptably low and the central bank will ease policy further if necessary to boost price pressures..