Market Volatility Expected Amid U.S. and Iran Tensions

The escalating tensions between the U.S. and Iran have led to significant market volatility, with uncertainties about future developments causing fluctuations. According to PANews, recent data indicates that the Federal Reserve may need to address rising inflation and declining employment to mitigate the risk of stagflation. Key market events to watch this week include: On Monday at 23:00 (UTC+8), the U.S. February New York Fed 1-year inflation expectation will be released. On Wednesday at 20:30 (UTC+8), the U.S. February unadjusted CPI annual rate, unadjusted core CPI annual rate, adjusted CPI monthly rate, and adjusted core CPI monthly rate will be announced. On Friday at 15:00 (UTC+8), the UK's January three-month GDP monthly rate, January manufacturing/industrial output monthly rate, and January adjusted goods trade balance will be published. On Friday at 20:30 (UTC+8), the U.S. January core PCE price index annual/monthly rate, January personal spending monthly rate, U.S. fourth-quarter actual GDP annualized quarterly rate revision, and January durable goods orders monthly rate will be released. At 22:00 (UTC+8) on Friday, the U.S. January JOLTs job openings, March 1-year inflation rate expectation preliminary value, and March University of Michigan consumer confidence index preliminary value will be available. Next week, the focus will be on the February CPI released on Wednesday and the January PCE released on Friday. If the core CPI and core PCE price index monthly rates exceed expectations, it could further support the U.S. dollar. Conversely, weaker data might weigh on the dollar and boost spot gold. Additionally, the Q4 earnings season remains active, with attention on Oracle's (ORCL.N) earnings next week.