Rate Hike or Relief: Five Data Points to Watch This Week

The Federal Reserve's recent rate hike has left traders wondering if another increase is on the horizon. This week, five key data releases will provide crucial information to inform the Fed's decision.

The Bank of Japan (BOJ) will publish its meeting minutes from July 30-31 on Monday, which may signal whether Tokyo will continue to raise interest rates. The BOJ has already increased its rate to around 1% in June and 1.25% in September, with a promise to continue raising the policy interest rate.

The US will see three data releases this week: the PCE inflation index on Wednesday, which is the Fed's preferred measure of inflation; the GDP growth rate for the second quarter on the same day; and the ISM manufacturing index on Thursday. The jobs report on Friday is also highly anticipated, with forecasters expecting around 90,000 new jobs.

These releases will have a significant impact on Treasury yields, which recently retreated from a 19-year high. Whether the Fed acts on this information remains to be seen, as Chair Kevin Warsh has refused to promise another rate hike.