Oscar Munoz, Macro Strategist at TD Securities, notes that the July Consumer Price Index (CPI) report will be the key highlight of the US data calendar this week.

Fed officials to double down on inflation concerns

"We are looking for core prices to have stayed strong on a m/m basis despite our expectation of slowing vs June."

"Apart from the inflation data, market participants are likely to focus on the preliminary release of the University of Michigan survey for August. We expect the recent improvement in gasoline and equity prices to lead to a new gain in sentiment."

"Separately, turning to Fedspeak, we look for Fed officials this week to double down on concerns about inflation and a tight labor market, and that they remain top of mind over those for growth."