Fed Weighs Next Move as PCE Inflation Index and BOJ Minutes Loom

The Federal Reserve's next move is still uncertain after raising interest rates two weeks ago. The central bank will consider five key data releases this week to inform its decision.

One of these releases, the PCE inflation index on Wednesday, is particularly important for the Fed. This metric measures consumer spending and is closely watched by policymakers.

The Fed's preferred inflation metric rose 3.4% in August, according to forecasts. The core version of this index, which excludes volatile food and energy prices, has also been increasing, reaching 3.3% in July.

The Bank of Japan will also release minutes from its recent meeting on Monday, potentially providing insight into the central bank's rate-hike strategy. Japanese government bonds, the yen, US Treasury yields, and Bitcoin are all sensitive to changes in Tokyo's monetary policy.