The coming week sees few economic reports of major significance being released in the US, aside from data on the housing sector.

On Tuesday, government data on the number of new homes under construction in May will be announced.

Analysts will be scrutinising the report for signs of the US housing market's health, which has suffered in recent months.

Masaki Fukui, a senior economist and currency analyst at Mizuho Corporate Bank, told Bloomberg predicted: "The US housing markets will remain weak... this will weigh on the dollar".

Meanwhile, in the UK, the Bank of England is due to release minutes of the meeting of its monetary policy committee earlier this month.

The markets will be interested in how voting went on interest rates, in particular whether there were votes for a June rate hike, which could increase the likelihood of an increase in July.

As of Monday morning, the US dollar had lost ground against the British sterling on the Asian markets, down from its Friday afternoon high of
1.9735 to 1.9780.

The Japanese yen was at a multi-year low against the euro of165.53, on the back of speculation that the Bank of Japan will not be raising interest rates sharply.