08:45 AM EDT, 06/03/2024 (MT Newswires) -- Market conditions have turned more favorable for the US dollar and could help it recover further off some of its weakest levels since March against major currencies like the euro and pound this week, according to strategists at Barclays.

"The coming fortnight is rich in high-profile data releases - with the ISM due on Monday and Wednesday, the JOLTS report on Tuesday and NFP on Friday, ahead of next week's CPI release (and FOMC meeting) on Wednesday, (June 12)" Barclays strategists wrote in a Sunday note to clients.

"In our view, initial conditions are turning more favorable for the USD into the data: negative month-end flow is behind us, dollar sentiment is off the highs, NFP expectations are more moderate while duration demand may be more shaky at a time FX volatility is close to post-COVID lows," they added.

Major US dollar pairs were mixed in early North American trade on Monday with the greenback having relinquished prior gains over some counterparts including the New Zealand dollar, Australian dollar, Swiss franc and Japanese yen, while remaining firm in relation to the euro, pound and Nordic currencies like the Norwegian krone and Swedish krona.

The greenback was also softer against most peers in the broader G20 grouping with the Korean won and Indian rupee outperforming all, aided by exit polling showing an increased majority for India's BJP-led National Democratic Alliance coalition, and a positive performance from China's renminbi, which rose after the Caixin Manufacturing PMI reached a two-year high.

Previously, the dollar sustained losses against all major currencies ahead of the weekend after the MoM reading of the core PCE price index surprised markets when falling to 0.2% from 0.3% in April. The lower reading may have left the annual rate steady at 2.8% YoY but still marked a resumption of progress in returning inflation to the Fed's 2% target.