The dollar dipped as the currency stumbled ahead of key economic data released later this week.

This morning the dollar was at 1.2250 against the euro and stood at 1.7863 to the pound.

A key period in the next week is likely to shape the dollar's fortunes, as the US gross domestic product figures mark the first major announcement tomorrow.

Analysts will be looking for signs of growth as a clue to which way the Federal Reserve meeting may go when it sits next week.

Mizuho Corporate Bank's Masaki Fukui, who is senior vice president of the forex division, told the Associated Press the market was in limbo.

"Market players are wary about tilting their positions in one way or other before the US growth data and the Federal Reserve's meeting," he said.

"Few traders are sure if it's okay to keep buying or selling until they actually see the results of these events."