"Inflation and PCE Data Set to Drive Markets This Week"

The European Central Bank's inflation expectation surveys, along with speeches from policymakers, are the main focus in an otherwise quiet market calendar. Easing inflation forecasts could reinforce market bets on a rate cut next week. Traders are also closely watching U.S., European, and Japanese inflation statistics due on Friday. The yen's weakness and potential Japanese intervention, along with Australian retail sales data, are also in focus. U.S. markets return from a holiday with a shortened settlement cycle, which may attract early-morning currency trade from Asian investors.