Later in the day, the US CPI data will be under scrutiny. The year-on-year change is expected to ease a notch to 4.9% (although still nearly 2.5 times more than the 2% target), while the core inflation is seen rising further to 4%, from 3.8% scored previously.
Soaring inflation has so far failed to persuade investors that the Fed will tighten monetary policy sooner than expected. However, the central bank will most likely announce tapering at its August Jackson Hole symposium.
Fed Chair Jerome Powell will give his semi-annual testimony to Congress on Wednesday and Thursday this week. He has repeated many times that the surge in prices would prove temporary, and monetary policy would remain accommodative for an extended period of time.
Still, equities continue to rise, and the USD has failed to strengthen notably, undermined by the falling US yields.
In commodities, nothing has developed over the previous days. Gold stays near 1,800 USD, silver is glued to 26 USD, and the short-term correction in oil seems to be over, with bulls attacking the 75 USD level again.