The personal consumption expenditure (PCE) price index data for the U.S. in July, (, was released last night, and the results were in complete alignment with market expectations. This result alleviated concerns that had arisen due to the producer price index (PPI) for July, ), significantly exceeding expectations.

Investors will next focus on the non-farm payroll data set to be released next Friday. Ideally, this data should be close to the expected value, whether slightly higher, in line with, or slightly lower is acceptable. If this situation is realized, the likelihood of a rate cut in September will increase significantly.

However, if the non-farm payroll data is much lower than expected, it may raise market expectations for a larger rate cut, but it could also trigger concerns about an economic recession, bringing a certain impact to the market.

On the contrary, if the data far exceeds expectations, it would be the most adverse situation for the market, as it could lead the Federal Reserve to reassess its rate-cutting path.

Overall, the current trend of economic data will largely influence the Federal Reserve's monetary policy decisions, which in turn will affect the direction of financial markets. Investors need to closely monitor the upcoming non-farm payroll data and its potential impact on future interest rate cut expectations.