The U.S. dollar is likely to face a sell-off this week if the U.S. Federal Reserve disappoints financial markets with moderate credit-easing action at its policy-setting meeting.
Currency dealers say the focus next week will be to what extent the central banks of the United States and Britain and the European Central Bank will cut their key interest rates during important gatherings.
On Tuesday, the Fed will convene a one-day meeting of its Federal Open Market Committee. The Bank of England will hold a two-day meeting of its monetary policy panel starting Wednesday, while the ECB board will meet Thursday.