07:18 AM EDT, 06/10/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Monday before a light start to the week, allowing markets to focus on Wednesday's consumer price data and the Federal Open Market Committee's decision.

The New York Federal Reserve's inflation expectations report for May is expected to be released at 11:00 am ET Monday.

Tuesday's highlights include the National Federation of Independent Business' business sentiment reading and weekly Redbook same store sales.

Wednesday's key event will be consumer price data for May, released during the FOMC meeting's second day, and the FOMC's rate decision later in the day. The CME's FedWatch Tool currently shows a 99.4% chance of no change in the current 5.25% to 5.5% target range for the federal funds rate and a 0.6% chance of a 25 basis point rate cut to a 5% to 5.25% range.

Thursday's highlights include weekly jobless claims and producer price data, followed by import and export price data and the preliminary University of Michigan sentiment reading for June Friday.

The 'quiet period' for the Federal Open Market Committee continues through the June 11-12 meeting.

A quick summary of foreign exchange activity heading into Monday:

EUR-USD fell to 1.0735 from 1.0802 at the Friday US close and 1.0889 at the same time Friday morning. The six-month economic outlook for the Eurozone improved modestly in June according to data released earlier Monday. The next European Central Bank meeting is scheduled for July 18.

GBP-USD fell to 1.2691 from 1.2722 at the Friday US close and 1.2792 at the same time Friday morning. There are no UK data on Monday's schedule. The next Bank of England meeting is scheduled for June 20.

USD-JPY rose to 156.8781 from 156.6982 at the Friday US close and 155.5732 at the same time Friday morning. Japanese gross domestic product contracted in Q1 compared with both the previous quarter and a year earlier, though the rate of decline was smaller than in the preliminary estimate, data released overnight showed. The next Bank of Japan meeting is scheduled for June 13-14, when no change in rates is expected.

USD-CAD rose to 1.3776 from 1.3761 at the Friday US close and 1.3687 at the same time Friday morning. There are no Canadian releases on Monday's schedule. The next Bank of Canada meeting is scheduled for July 24.