The dollar fell in European trade on Monday against a basket of major rivals, resuming losses and heading for five-week lows as US treasury yields fell as well.

Recent weak inflation data from the US bolstered the case for at least two Fed rate cuts this year.

To reassess these odds, investors are waiting for important speeches by Fed officials today, most notably the famously hawkish Christopher Waller, on the battle with inflation and the future of interest rates.

The Index

The dollar index fell 0.1% today to 104.39, with a session-high at 104.52, after closing Friday flat, marking a 0.2% profit in the previous day away from a five-week low at 104.08.

The index lost 0.8% last week, the second weekly loss in three following inflation data.

Now markets await important new clues on the future of US interest rates, including fresh data and speeches by Fed officials.

US Rates

The odds of a June Federal Reserve interest rate cut stand at just 9%, and at 28% for July, and 65% for September.

According to the Fedwatch tool, investors are expecting two 0.25% rate cuts by the Fed this year, likely in September and November.

Investors are now waiting for multiple speeches by Fed officials, including a speech by the influential Christopher Waller, known for his hawkish stance on policies.