USD weakened against most of its major rivals in the European session on Monday as investors waited for a flurry of important U.S. economic reports later this week, which could impact expectations of the Federal Reserve’s near-term rate moves.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.11% from the previous close to 104.14.
A series of economic releases will be in markets’ focus this week, including an advance estimate of the U.S. third-quarter GDP growth (on Wednesday), the Fed’s preferred inflation metric - the core personal consumption expenditures (PCE) price index (on Thursday) and a slew of reports on the U.S. labour market, the most anticipated of which is Friday’s non-farm payroll report for October.
Investors will assess the data for clues to the health of the U.S. economy and their potential impact on the pace of future interest rate cuts by the U.S. central bank.