The Pound moved down against the Dollar on Monday before a series of central bank meetings taking place this week.

One of which is the Bank of England (BoE), which is forecast to increase rates for the 10th straight time. The central bank is on track to announce its first rate hike of 2023, with markets forecasting a rise of half a percentage point to 4% on Thursday.

Sterling was down 0.14% against the greenback at $1.2380, not far away from a seven-month top hit last week of $1.2381, Reuters reports.

According to the head of FX Analysis at Monex, Simon Harvey: "Not only do GBP traders have to face up to fresh interest rate decisions from major central banks including the BoE, but it will also have to trade amid a volatile cross-asset risk environment as markets are set to receive the first official gauge of how China's reopening is playing out," he said.

In addition, the Pound fell 0.4% against the Euro to 88.00 pence due to higher inflation in Spain, boosting predictions the European Central Bank will also increase rates by half a percentage point on Thursday.

Indeed, the single currency rose 0.2% to $1.0891 as data revealed Spain's consumer prices rose 5.8% this month compared to January last year.

"Today's data will underline expectations for a 50-basis point hike from the ECB on Thursday and also signal that rates will be moved further up,", according to Niels Christensen, the chief analyst at Nordea.

Moreover, there was little change to the Dollar index – measuring the greenback against six peers – at 101.88 after reaching an eight-month low of 101.50 last week.

The index was down over 1.6% this month and on the course for a fourth straight monthly loss, weighed by predictions the Federal Reserve is moving closer to ending its rate hiking cycle, and rates won't have to increase as much as first thought.