Looking at the data published at the end of last week, the PCE price index that measures personal consumption expenditures in the United States (US) met expectations with an increase of 0.3% for January, similar to the reading in December.
The core PCE reading also recorded a 0.3% increase from the previous month at 0.2% while the annual PCE reading increased slightly to 2.6%.
The reading, which is in line with the previously published inflation data, further strengthens expectations for the Federal Reserve (Fed) to maintain interest rates and slow monetary easing.
This week's indicators will be focused on the US NFP employment report for the Fed to assess the current health of the labor sector in early 2025.
Current data supports the US dollar to show good performance at the close of trading in February.
In addition, an additional factor supporting the continued strengthening of the US dollar for the opening of March is risk-on market sentiment.
Over the weekend, financial markets were in turmoil over the issue of President Donald Trump meeting with Ukrainian President Volodymyr Zelenskiy at the White House early Saturday morning.
The meeting, which was initially to discuss a mineral deal between Ukraine and the US, ended in a tense standoff and Zelenskiy left the White House grounds early.
Investors will remain cautiously watching the current issues that are swirling in the markets for the opening of trading in early March.
