According to Jinshi, Mazen Salhab, chief market strategist for the Middle East and North Africa at BDSwiss, said that any unexpected PCE data on Friday could affect U.S. bond yields and the direction of the dollar. PCE is the inflation indicator favored by the Federal Reserve.

He noted that if PCE inflation is lower than expected, U.S. Treasury yields could fall, putting further pressure on the dollar. Although traders expect significant rate cuts by 2025, the bond market is still sensitive to changes in inflation and signals from the Federal Reserve, which could affect the performance of bonds and the dollar next week.