The euro languished at $1.01475, after losing 2.3% last week and briefly falling to its lowest level since late 2002.
The greenback gained 0.37% on the 136.63 yen in morning trading, not far from a 20-year high reached last month, leaving the dollar index at 107.29.
“The (dollar) could remain expensive until risks around high global inflation, European energy security and China’s growth outlook are resolved,” Barclays analysts said in a statement. to customers.
“This week’s US CPI will be an important piece of the puzzle, with the Fed deciding between 50 and 75 basis points ahead of the July meeting.”
The data is due Wednesday and markets would likely interpret a high reading as a sign that the US Federal Reserve should hike rates even more aggressively to fight inflation.
With inflation soaring across much of the world, rate hikes are also expected this week from the Reserve Bank of New Zealand on Tuesday and the Bank of Canada on Thursday. [NZ/INT] [CA/INT]
Energy concerns meant the euro struggled against more than the dollar and in early trading on Monday it was 0.85 British pence and 138.48 yen, just above levels of last Friday, when it hit its lowest level since the end of May against these two currencies.
The latest concern for the European economy, the largest gas pipeline transporting Russian gas to Germany begins its annual maintenance on Monday. Flows are expected to stop for 10 days, but governments, markets and businesses fear the shutdown could be extended due to the war in Ukraine.
The other big economic story of the week is China’s second-quarter GDP on Friday, with investors watching for signs showing how badly the economy has been hit by COVID-19 shutdowns in many cities during the quarter. .
The number of cases is rising again slightly in Shanghai, although it is much lower than it was, and the authorities in this city and several others are scrambling to eradicate new epidemics.
Britain will release second quarter GDP data on Wednesday, but the focus is more on the ruling Conservative Party’s choice of its next leader and prime minister, as candidates throw their hats into the ring, many promising tax cuts.
The pound was stable at $1.2028 on Monday morning, having ended a volatile period last week not far from its starting point.
Bitcoin was at $20,800 after its last attempt to move significantly away from $20,000 failed over the weekend. It has been stuck around this level for the past month.