The U.S. dollar edged lower in early European hours Monday, but losses are minimal as traders await signals from a string of central bank meetings this week, with the Federal Reserve, in particular, in the spotlight.

At 03:05 ET (07:05 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower at 100.645, well above a 15-month low hit earlier in July.

The dollar gained over 1% last week after data showed the U.S. labor market remained tight, creating some uncertainty over the path the Federal Reserve will guide towards on Wednesday.

The Fed is still widely expected to hike rates by 25 basis points, but whether it will signal more rate hikes this year remains to be seen, given that U.S. inflation, while slowing, is still trending above the bank's annual target range.

EUR/USD rose 0.2% to 1.1141, with Thursday's European Central Bank meeting set to also result in an increase of 25 basis points.

Again, with such a hike largely priced in, it's the associated comments from ECB President Christine Lagarde that the market is waiting for, in particular, the signal she sends for the September meeting with eurozone inflation still considerably above the central bank's target.

USD/JPY fell 0.3% to 141.39, with the yen recovering to a degree from steep losses last week ahead of Friday's Bank of Japan policy meeting.

Elsewhere, GBP/USD rose 0.2% to 1.2879, helped by last week's strong retail sales data, AUD/USD rose 0.1% to 0.6739, inching up on the prospect of more stimulus measures in China given the importance of that market to the Australian export market, while USD/CNY rose 0.1% to 7.1943.

Source : Investing.com