Asian session review: the dollar continued to rise against the euro

During today's Asian session, the US dollar rose slightly against the euro and the yen.

The focus of traders ' attention this week is directed to the next meeting of the European Central Bank (ECB), which will be held on Thursday. Last week, the euro against the dollar rose above the $1.2 mark for the first time since may 2018, after which it quickly moved to a fall on signals of concern about the ECB's significant strengthening of the european currency recently. ECB leaders fear, in particular, that the strengthening of the euro may further weaken inflation and increase the need to increase monetary stimulus. On Friday, the euro fell against the dollar for the fourth consecutive session.

Since March, the ECB has launched stimulus programs totaling about $3 trillion to support the economy in crisis due to the COVID-19 pandemic.

Danske Bank experts believe that the recent strengthening of the euro is temporary and should not affect inflation expectations in the euro area.

"Although we have raised the short - term forecast for the EUR/USD, we expect the european currency to weaken on the 12-month horizon, as structural and institutional weakness in the euro area will play a role," Danske Bank said.

The ICE index, which tracks the dynamics of the US dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose 0.25%.