This week, pay attention to three major events:
(1) The possibility of escalation or reconciliation in the Middle East
Previously, negotiations between Hamas and Israel broke down, and the Israeli leadership insisted on attacking Rafah. However, this move was strongly criticized by the United States and other allies, and was also threatened by other Middle Eastern countries. Recently, news of peace talks has been heard again. If a reconciliation agreement can be reached, it will be a major positive. On the contrary, exacerbating the conflict will constitute a negative.
(2) The US PCE data for April will be released this Friday
It will be released at 8:30 pm on Friday. If it is higher than expected, it will be negative. If it is lower than expected, it will be positive. According to the current trend, PCE is not expected to be significantly negative, and the probability of a flat opening and positive is high.
(3) The US Treasury Department will repurchase US Treasury bonds for the first time in more than 20 years
Starting from Wednesday this week, the US Treasury Department will launch a series of US Treasury bond repurchases. The Treasury Department's repurchase of a large number of Treasury bonds will increase market liquidity, while reducing the supply of Treasury bonds in the market, lowering Treasury bond yields, and benefiting digital currencies.