Dollar Dominance at Stake as Fed Meeting Looms

The US dollar is expected to be in focus this week as the Federal Reserve holds its July 29-30 meeting, where policymakers will likely discuss inflation and future rate cuts.

Data released recently show that the US economy has held up well, with June retail sales increasing 0.2% and initial jobless claims dropping to 208,000, their lowest since April.

The European Central Bank's decision last week to keep its deposit rate unchanged at 2.25% has also been a factor in stabilizing the euro.

Meanwhile, sterling is being pulled forward by expectations regarding the Bank of England, which is widely anticipated to maintain Bank Rate at 3.75% at its next meeting.