Fed Rate Decision to Dominate Markets as PCE Index Looms

The Federal Reserve's upcoming interest rate decision is set to dominate market attention this week, with investors divided over whether the central bank will raise rates or maintain its current stance.

A recent surge in US bond yields and a three-year high inflation reading have fueled expectations of a September rate hike, with some markets assigning a 50% probability to such an outcome. However, other indicators suggest that the Fed may hold off on tightening monetary policy for now.

The Personal Consumption Expenditures (PCE) index is due out this Thursday, and its release could provide crucial insight into the impact of geopolitical tensions on inflation trends. A moderate decline in PCE from last month's 4.1% year-over-year reading has been predicted by some analysts.

Meanwhile, Bitcoin's price remains stuck in a familiar range, with the cryptocurrency battling its 50-month exponential moving average trend line. Some traders are warning of potential sell-side pressure and a rejection from current resistance levels.