The dollar held steady against major currencies as traders returned to their desks after the holiday weekend. Market focus is now shifting towards upcoming economic releases that could provide further clues about the Federal Reserve’s stance on interest rates.

Analysts suggest that the dollar’s near-term trajectory will largely depend on the strength of economic data, particularly inflation and employment figures. Stronger-than-expected data could bolster the case for further rate hikes, while weaker data might prompt the Fed to adopt a more cautious approach.

Several key economic reports are scheduled for release this week, including:

• Consumer Price Index (CPI)
• Producer Price Index (PPI)
• Retail Sales

These reports will be closely scrutinized by investors seeking to gauge the health of the U.S. economy and its potential impact on monetary policy. Trading volumes are anticipated to pick up as the week progresses, potentially leading to increased volatility in the currency markets.