• DXY snapped a five-day winning streak and seems to be taking a breather below 103.00
• Fed easing expectations have been tempered following last week’s jobs report
• Fed speakers are expected to reiterate a gradual approach

The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, witnessed a calm Monday session with mild losses, holding steady despite elevated levels near last week's highs. Amidst ongoing Middle East tensions, market participants await key events this week, including the release of the Federal Reserve's (Fed) Federal Open Market Committee (FOMC) Meeting Minutes and US Consumer Price Index (CPI) data.

While the US economy exhibits moderate deceleration, indications of economic resilience persist. Despite this, the Fed maintains a data-driven approach, emphasizing the significance of incoming economic indicators in determining the pace of interest rate adjustments. In that sense, last week’s jobs report made markets price out a 50 bps cut in November or December