A jittery start to the week | FX Research

We're coming out of a week in which the US dollar was the worst-performing major currency for a change. The reversal in the Dollar's fortunes came from softer Trump Administration talk on trade, higher US equities, and an expectation the Fed may still do more than less when it comes to rate cuts in 2025.

Solid PMI data out of the Euro Zone and UK also helped to add to the demand for the Euro and Pound, which propped up other currencies as well. However, already into Monday, the market is back to worrying—this on the back of the news of the Trump tariffs on Colombia and a softer round of PMI data out of China.

As far as Fed rate expectations go, Fed funds futures are currently pricing 42 basis points of Fed cuts through 2025.

Key standouts on Monday's calendar ahead include German Ifo readings, Canada wholesale sales, the Chicago Fed National Activity Index, US new home sales, Dallas Fed manufacturing, an ECB Lagarde speech, and US building permits.