Bitget CFD Chief Analyst: Ahead of Jackson Hole, Market Focus Shifts to Inflation, Long-Term Treasury Yields, and Policy Framework

Odaily News, Bitget CFD Chief Analyst Lewis Huang stated during a live stream that this week's US PCE data and the Jackson Hole Global Central Bank Symposium will be the market's focus. The market is not only watching whether the Fed will adjust interest rates, but also paying close attention to how it will address issues such as inflation persistently running above the 2% target, elevated long-term Treasury yields, and fiscal pressures.

Lewis Huang pointed out that if core PCE comes in higher than expected and the Fed signals a continuation of tightening or emphasizes its fight against inflation, Treasury yields and the US dollar could find support, while interest-rate-sensitive assets such as gold and the Nasdaq 100 may face headwinds. Conversely, if inflation data cools and officials lean toward preserving policy flexibility, the market may begin pricing in future easing again, which would be favorable for gold, non-US currencies, and growth-oriented equity indices. With this PCE data largely in line with expectations, market attention has shifted to the Jackson Hole Global Central Bank Symposium.

Additionally, geopolitical tensions in the Middle East and risks surrounding the Strait of Hormuz could still push up oil prices and inflation expectations. Traders may want to closely monitor the interplay between the US dollar index, 2-year and 10-year US Treasury yields, gold, and crude oil. Following major data releases, it is advisable to wait for the market to further confirm direction before acting, avoiding the use of high leverage to chase the initial move.