TD Research expects a dovish tone from this week's Fed Powell testimony and the FOMC minutes from the June meeting.

"Fed Chair Powell will use his two-day testimony before Congress to reiterate the view that the Fed stands ready to sustain the current economic expansion. We expect the minutes to offer more clarity on what would lead the Fed to lend this support after the notable dovish shift at the May meeting. Global uncertainty and subdued inflation should remain key concerns for the Fed," TD adds.