USD stuck in a range

The USD is expected to trade sideways with a weakening bias in the short term, as the Fed seems to remain very dovish and inflation is still not showing any sign of picking up, according to last week's release. With only tier 2 data in the US next week, no major move is expected in the dollar and look for further positioning reductions, says Barclays. 

"On the data front, on Tuesday, we get durable goods orders for May; we expect a monthly drop in the headline figure of 2.5% (consensus: -0.5%) and an increase of 0.7% in the core, compared with the 0.6% consensus (ex-transport). Later in the week is the final reading of Q1 GDP, which is expected to be revised up from -0.7% to -0.2%", states Barclays. 

Finally, on Thursday, the PCE index is scheduled to be published, along with personal income and spending data. 
Regarding the PCE, consensus expects a 0.4% increase m/m, while for the core series, the consensus expect +0.1%. For US spending and income data, Barclays forecasts +0.8% and 0.4% respectively.