Parities against the dollar were mixed on Monday, with the euro up +0.2% at 1.0790 and the pound up +0.3% at 1.2560... but this was offset by a -0.35% fall in the yen at 156.25 and a -0.2% erosion in the Swiss franc at 0.9080.
As a result, the $-Index ended little changed, with a spread of less than 0.1% at 105.20.

Forex traders remain on the sidelines - as was largely the rule last week - but are expecting a livelier week ahead, with US inflation figures on Wednesday and a speech by Jerome Powell tomorrow at the annual conference of the Foreign Bankers Association in Amsterdam.

Will the Fed Chairman say anything about his inflation expectations (April was the 37th month above 3%)?
Inflation remains "THE" topic, as a more confident speech on the resumption of a downward trajectory (towards 2%) would rekindle speculation of 3 rate cuts this year (July, September, December), whereas the current consensus is hoping for only 2, with only one certain to take place at the end of the year.
Another question concerns Japan, with growth slowing, inflation rising... and the yen falling inexorably towards its all-time lows of the past week (around 156.5/$ this evening).

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