Week Ahead-Fed expectations, US PCE index, China PMIs lead
Repeats with no changes
Aug 26 (Reuters) -The fallout from the Federal Reserve's Jackson Hole Economic Policy Symposium will likely dominate market sentiment on Monday and shape rate expectations in a relatively light week for top-tier data.
Federal Reserve Chair Jerome Powell on Friday endorsed an imminent start to interest rate cuts - "The time has come for policy to adjust"
At the NY close CME Fedwatch priced a 50pt September cut at 34.5% from 25% a week ago.
There is moderate U.S. event risk with Julydurable goods, Augustconsumer confidence, the second estimate of Q2 GDP and weekly jobless claims, followed by University of Michigan sentiment and inflation expectations on Friday, alongwith the U.S. core PCE price index, the Fed's favoured inflation gauge. Atlanta FedPresident Raphael Bostic is due to speak on the economic outlook.
China's officialNBS August PMIs on Saturday are unlikely to improve much from July as pessimism on the country's economic prospects deepens. Industrial profits data isdue on Tuesday.
The People's Bank of China is likely to hold its one-year medium-term lending facility rate at 2.50% on Monday. The delayed rollover reflectsits reduced role in guiding markets, after benchmark lending rates were left unchanged last week.
There is low-key event risk in Europe, as the summer holidays come to a close. The data highlights are euro zone final August consumer confidence and flash HICP,German Q2 GDP, CPI and the Ifo survey. There is no top-tier UK data or BoE events.
Data leads in Japan with services PPI on Tuesday, followed by Tokyo CPI for August, preliminary industrial output, jobs, and retail sales on Friday.
Australia's July CPI on Wednesday will be key for Reserve Bank of Australia rate expectations as the central bank continues to reiterate its higher-for-longer rates stance while emphasising potential upside risks to inflation. Capital expenditure for Q2 and the final reading of Julyretail sales are also due.
Canada publishes Q2 current account and GDP data. New Zealand has business and consumer confidence.
For more click on FXBUZ
Andrew Spencer and Krishna Kumar are Reuters market analysts. The views expressed are their own. Editing by Sonali Desai
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