Market players should look out for the data on dollar and US Treasury yields, as there will be few economic data releases this week. At the time of writing, the dollar index remains near a three-month high, slightly above 104 points.
The yield on 10-year US Treasury bonds, on the other hand, remains above 4%, lower than last week's 15-year high.
Despite disappointing employment data released on Friday, the threat of further interest rate hikes by the Federal Reserve has not completely disappeared but just diminished. According to the CME FedWatch Tool, the central bank will likely keep rates unchanged in September. The tool also sees a 60% chance that rates will remain unchanged in November.
Although the released data indicates a slowdown in economic activity, the consequences of inflation uncertainty persist. The trajectory will depend on the economic data to be published in the US in the coming weeks.