The U.S. Dollar moved down on Monday, yet losses were limited by last week's wholesale inflation data rising more than forecast in November.

The greenback rose the most against commodity-linked currencies such as the Australian and New Zealand Dollars, yet also edged up 0.5% against the Sterling.

At the time of writing, the Pound was down 0.1% at $1.225 after declining to a session low of $1.2207 and fell 0.1% against the Euro at 86.01 pence.

A series of central bank meetings are taking place this week, and consumer inflation data is due from the U.S., which may be influential in deciding the U.S. rate outlook and the Dollar, Reuters reports.

Indeed, the Fed, European Central Bank (ECB), Bank of England and Swiss National Bank are all set to announce rate decisions. "With any luck, one would hope that by the end of the week, markets can probably revise down a bit their expectations as to where Bank of England and ECB rates will peak and be confident that the Fed is going to go 5% – or north of that," said Berenberg economist, Kallum Pickering.

"That's really going to be an interesting development across all asset classes because so far, what we have had has been a 'follow the Fed' rule book, and what do we see in currency markets, what do we see in equities? We believe the Fed will keep going, the ECB stops early, and the Bank of England maybe stops hiking after this week," he added.

The Euro stemmed overnight losses and moved up 0.2% to $1.0549. Up to now, in Q4, the single currency has risen close to 8% on bets, and the ECB will continue its aggressive stance of rate hikes.

Whereas now money markets have priced in the ECB likely hiking rates by half a percentage point this week. The Fed may also announce a rate hike of 50 basis points this week, the Reuters report adds.