Recently, the financial market sentiment has been high, with investors actively positioning in the stock and bond markets, anticipating that the Federal Reserve may soon shift to a rate-cutting policy. Last Friday, Fed Chairman Powell's speech sent dovish signals, triggering the most significant cross-market rally since April this year. The cryptocurrency market reacted particularly strongly, with Ethereum prices climbing to nearly a four-year high, while gold also rose by 1%.

This week, the market will closely monitor the following key events:

On Tuesday, Dallas Federal Reserve President Logan and New York Federal Reserve President Williams will speak at the centennial celebration of the Bank of Mexico. On the same day, the U.S. August Consumer Confidence Index and the Richmond Federal Reserve Manufacturing Index will be announced.

On Thursday, Richmond Fed President Barkin will deliver a speech, and the revised annualized quarterly rate of GDP for the second quarter in the United States will also be released.

Friday is the most critical day of the week, as Federal Reserve Governor Waller will deliver a speech on monetary policy. More importantly, critical economic data such as the year-on-year core PCE price index for July and the month-on-month personal spending will be released, which will provide important references for the Federal Reserve's future policy decisions.

Looking ahead at the USD trend, as labor market data has become a core indicator for Federal Reserve decisions, and the market generally expects a possible interest rate cut next month, the USD may continue to face downward pressure. Unless future employment reports significantly alter the economic outlook, the USD index is expected to remain weak, especially compared to currencies supported by relatively hawkish central banks.

However, for investors, although a single rate cut seems imminent, the implementation path of long-term easing policies is not smooth sailing. The uncertainty of policy outlook is becoming a new focus for the market, and investors need to closely monitor every economic indicator and central bank official's speech to grasp the direction of future economic policies.