The annual Jackson Hole symposium took place last week with a speech by Federal Reserve (Fed) Chairman Jerome Powell being the main focus of the market on Friday.
Investors got new clues for the central bank's monetary policy when the 'dovish' tone delivered by Powell provided a clearer picture for the results of next month's meeting.
Although cautious, Powell assessed the increasing risks to the US job market, following the latest NFP report that declined.
Powell's speech has opened up greater room for interest rate cuts to be implemented at the September meeting, after interest rates were still maintained unchanged at 4.50% throughout the year.
Therefore, the US dollar showed a significant reaction with a sharp drop in value in the last trading session of last week.
The US dollar's declining performance is expected to continue into this week while several key economic data will be watched including the US second-quarter economic growth reading and PCE price index data.
Pressure has continued to mount on the US central bank in recent weeks with President Donald Trump's continued criticism of Powell and new pressure on Fed Governor Lisa Cook, who is facing allegations of fraudulent home purchase transactions.
Trump has threatened to fire her if she does not resign immediately.
