Last week, the USD surged to one-month highs against both the Euro and the Yen, on the heels of a hike in American interest rates. As this week will not offer much in terms of economic releases, currency traders will likely remain focused on interest rates. A slew of USD-positive economic data has many economists convinced that the Fed will hike interest rates by 25 basis points at its next meeting. Based on credit futures (which serve as a proxy for future interest rates), traders believe there is a 40% probability of such a hike. Traders are expecting the USD to benefit from the building anticipation, and expect a similar surge in the USD to occur if the Fed delivers on expectations. The Wall Street Journal reports:

“The dollar has gotten a lot of strength [last week] alongside a recovery in interest-rate expectations, and we’re likely to see more of that focus on rates and yields,”

Read More: Lack of New Data Is Likely to Crimp Dollar This Week