Citigroup Delays Fed Rate Cut Forecast Amid Strong Jobs Data and Inflation Concerns 
India's Central Bank Holds Rates Amid Iran War Energy Shock 
Bank of Japan Signals Rate Flexibility Amid Yen Volatility 
Bank of America Maintains Forecast for Two Fed Rate Cuts in 2026 Despite Inflation Risks 
South Korea Central Bank Signals Cautious Policy Amid Inflation and Middle East Tensions 
Federal Reserve Probes Big Banks Over Private Credit Exposure Amid Growing Systemic Risk Concerns 
RBNZ Holds Rates at 2.25% as Middle East Conflict Fuels Inflation Concerns 
Bank of Japan Warns of Regional Economic Risks Amid Middle East Conflict and Rising Oil Prices 
RBI Holds Interest Rates Steady Amid Middle East Tensions and Global Uncertainty 
This week's economic data should confirm the cyclical out-performance of the US economy. Constructive US data, together with the renewed weakness in commodity prices and continued nervousness around China and Greece developments, is expected to support the greenback.
Even though recent external events could potentially delay the long-awaited normalization of monetary policy in the US, it is confident that they would prove to be way more damaging to other economies that heavily depend on raw materials or those who have had difficulties anchoring medium term inflation expectations.
"We see any sell-off in the USD as an opportunity to re-build positions, especially versus the commodity currency block (AUD, NZD, NOK and CAD) and some European currencies (EUR and CHF)", says Barclays.
On Wednesday, Fed Chair Janet Yellen will discuss the conduct of monetary policy and assess the latest economic developments in her semi-annual testimony before Congress.
"We do not anticipate any change in the Fed's rhetoric about the prospects of monetary policy and we expect Chair Yellen to continue highlighting the data- dependency of future decisions", added Barclays.
