The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, edges slightly lower and trades near 107.00 at the time of writing on Monday. Market mood improved after European leaders, including Ukrainian President Volodymyr Zelenskyy, showed a willingness to guarantee a peace deal in Ukraine on Sunday. The plan now needs to be backed by the United States (US).

On the economic data front, the focus will be on the manufacturing sector in the United States. In addition to the S&P Global Purchase Managers Index (PMI) final reading for February, the Institute for Supply Management (ISM) will release its specific manufacturing PMI report. Besides the headline gauge, the Prices Paid and New Orders components could give some insight into inflation and how order books look in the sector after just over a month of US President Trump's influence.

Daily digest market movers: All about Manufacturing

At 14:45 GMT, S&P Global releases its Manufacturing PMI final reading for February. Expectations are for a steady 51.6 from the preliminary reading.

At 15:00 GMT, the ISM will release its report on the Manufacturing sector for February.

The headline PMI is expected to come in at 50.5 compared to 50.9 in January.

The Prices Paid subindex is expected to come in at 56.2, coming from 54.9 in January.

The New Orders component does not have a forecast available and stood at 55.1 in the January reading.

Equities are in a good mood and are mildly positive at the start of this week.

The CME Fedwatch Tool projects a 25.4% chance that interest rates will remain at the current range of 4.25%-4.50% in June, with the rest showing a possible rate cut.

The US 10-year yield trades around 4.25%, further down from last week's high of 4.574%.(Newsmaker23)

Source: FXstreet