US Markets Eye PCE Inflation Data and Jackson Hole for Rate Guidance

Global markets will be closely watching US PCE inflation and Federal Reserve Chair Kevin Warsh's address at the Jackson Hole Symposium this week. The core print of the US PCE inflation is expected to rise by 0.2% month-over-month, which could provide cues on underlying inflation momentum and the Fed's policy outlook. The Jackson Hole Symposium begins on Thursday, with Fed Chair Warsh's address on Friday likely to be closely watched for further guidance on interest rates.

The US Dollar Index fell 0.9% last week to 98.74 due to the US Treasury's decision to increase buybacks of longer-dated securities to rein in rising US yields. This has led to a rebound of major DM currencies, including the EUR and GBP, against the greenback.

Commodities such as Brent crude have been volatile due to continued concerns over supply disruptions from the Middle East. Oil prices rose over 6% last week to $94/bbl but eased modestly in early trade on Monday. Gold gained over 5% last week to above $4,600/oz and edged further higher this morning, supported by dollar weakness and safe-haven demand.