The latest US PCE inflation data showed a year-over-year increase of 2.5% in July, unchanged from June and below market expectations of 2.6%. The Core PCE, which excludes food and energy prices, also remained steady at 2.6% year-over-year. These lower-than-expected figures have sparked optimism among investors about a potential rate cut by the US Federal Reserve in September.

Following the release of the data, there is growing speculation about a 25 basis points rate cut by the Fed, with the CME FedWatch Tool indicating a 69.5% probability. St. Louis Fed President James Bullard suggested more rate cuts could follow in November and December, further boosting market sentiment.

In response to the cooler inflation data, Bitcoin and other cryptocurrencies showed signs of recovery, with BTC trading at $59,624 and ETH at $2,525. Despite this, the US 10-year bond yield rose to 3.88%, and the US Dollar Index increased to 101.440.