• There won’t be any high-level US reports due this week.
• Fed officials aren’t providing any new insights on the bank’s next movements.
• The next highlight will be next Wednesday when the US releases April’s CPI figures.

The US Dollar Index (DXY) is trading at 105, registering mild gains. Market dynamics are currently influenced by Federal Reserve (Fed) Chair Jerome Powell's cautious remarks regarding the unpredictable trajectory of inflation despite an easing trend in recent times. As well as Powell, the Fed officials flagged concerns regarding sticky inflation, despite the long implementation of restrictive monetary policies. Unless any of the Fed speakers kick the table, there won’t be any big movements this week for the USD.

Investors got spooked on Friday by the soft labor market report and rushed to bet on sooner rate cuts. However, the US economy seems to be resilient, and the pace of the USD will be dictated by incoming data.