"Inflation Trifecta: Market Focus on USD, Euro, and Gold Ahead of Busy Data Week"

Markets are preparing for a week focused on inflation, with expectations of a rise in the core U.S. personal consumption expenditures (PCE) prices and a potential decrease in European and Japanese consumer prices. The Federal Reserve's core PCE measure is forecasted to increase, leading to a shift in the expected timing of the first Fed rate cut. Additionally, the European Central Bank is anticipated to lower its inflation forecasts, while the Bank of Japan faces a decision on policy tightening amidst a potential slowdown in inflation. The Treasury market also faces a significant week of new supply, and there is a risk of U.S. government agencies being shut down if Congress fails to agree on a borrowing extension by Friday.