Major currency pairs fluctuate near the previous week's closing levels early Monday as market participants stay on the sidelines ahead of this week's critical data releases and central bank meetings. Dallas Fed Manufacturing Business Index will be the only data featured in the US economic docket.

The US Dollar (USD) Index continues to move sideways below 104.50 in the European morning after ending the week virtually unchanged. Meanwhile, US stock index futures trade in positive territory, while the benchmark 10-year US Treasury bond yield stays below 4.2%. The Federal Reserve (Fed) will announce monetary policy decisions on Wednesday following the July 30-31 meeting. Throughout the week, employment-related data releases from the US will also be watched closely by investors.

EUR/USD registered small gains on Thursday and Friday but registered weekly losses. The pair holds steady at around 1.0850 at the beginning of the European session. On Tuesday, second-quarter Gross Domestic Product (GDP) data from Germany and the Eurozone, alongside German inflation data for July, will be featured in the European economic docket. 

GBP/USD lost nearly 0.4% last week and closed the second consecutive week in negative territory. The pair stays in a consolidation phase above 1.2850 on Monday. On Thursday, the Bank of England (BoE) will announce its interest rate decisions.

Gold gained traction on Friday and erased a portion of its weekly losses. Although XAU/USD started the week on a bullish noted and climbed above $2,400 during the Asian trading hours, it retreated below this level by the European morning. At the time of press, Gold was trading marginally higher on the day at around $2,390.

The Bank of Japan (BoJ) will release its monetary policy decision in the Asian session on Wednesday. USD/JPY lost over 2% last week and edged lower early Monday. As of writing, the pair was trading slightly below 153.50.

The Australian Bureau of Statistics will publish the quarterly Consumer Price Index (CPI) data for the second quarter on Wednesday. AUD/USD posted losses for nine consecutive trading days and touched its lowest level since early May near 0.6500 before staging a modest rebound on Friday. The pair trades in a narrow channel at around 0.6550 in the European morning on Monday.