traders price a more than 72% chance the Fed will cut interest rates by 25 basis points in September, up from 59% last week. Traders are also pricing in the growing possibility of a second interest rate cut in December.
Key US data points for the week include Fed Chairman Powell's speech to the US Congress on Tuesday and Wednesday. Consumer price index; producer prices on Thursday and Friday - will likely influence the central bank's interest rate outlook.
Elsewhere, in weekend news, a coalition of left-wing parties in France, known as the New Popular Front, won the most seats in the National Assembly election, according to initial predictions.