Week Ahead for FX, Bonds: U.S. PCE Data, Middle East Developments in Focus

By Dow Jones Newswires staff Below are the most important global events likely to affect FX and bond markets in the week starting May 25. U.S. PCE inflation figures will likely mark the highlight among economic data due in the coming week as investors increasingly anticipate that the Federal Reserve's next move will be to raise interest rates. Focus will also remain on events in the Middle East and whether there is any progress in talks between the U.S. and Iran on ending the conflict in the region and freeing up oil supply. In Europe, provisional inflation figures for May from individual eurozone countries and the European Central Bank accounts will be watched after a string of recent data suggested that economic activity is faltering. In Asia, investors will focus on central-bank decisions in New Zealand and South Korea, while inflation data from Japan's capital and Singapore will offer fresh clues on price pressures as economies grapple with the continuing Middle East conflict. China's official PMI surveys will be watched for signs of the strength of the world's second-largest economy.