The greenback ticked up on Monday, bolstered by a safe-haven demand amid escalating tensions in the Middle East, while the pound dropped before BOE’s meeting for interest rate decision.

The dollar index that gauges the greenback versus its major pairs added 0.2% at 104.247.

Focus is now squared on Fed’s meeting on Wednesday to get more hints on expected September interest rate cut.

However, the central bank in the US is projected on a broad scale to adopt a muted stance this week.

Inflation figures from May and June are the main factors that supported the need for rate cut.

GBP/USD dropped 0.5% lower at 1.2809, before the anticipated BOE meeting scheduled on Thursday.

Expectations hovers around a likelihood of rate cut by BOE, however the bank is still concerned about high inflation in the services sector.

EUR/USD slid by 0.2% to 1.0836, with the euro negatively impacted by the probability of further rate cuts by ECB.

USD/JPY inched up to 153.75, the pair is near its lowest levels in almost three months, before BOJ meeting scheduled this Tuesday.