Dollar supported by market caution as growth fears dominate

The U.S. Federal Reserve has signalled a 75 basis point rate 

The dollar held firm in early trading on Monday as traders sought safer assets and braced for a sharp U.S. interest rate hike later this week, Qazet.az reports.

European stock indexes opened in the red, with investors cautious about how company earnings will hold up in the face of a global economic slowdown and high inflation.

One sixth of Europe's STOXX 600 will report second-quarter results this week, with earnings expected to have grown 22% year-on-year, according to Refinitiv I/B/E/S forecasts.

The U.S. Federal Reserve has signalled a 75 basis point rate hike at its July 26-27 meeting, although data last week showing inflation hit 9.1% year-on-year in June raised the possibility of a larger 100 bps hike later this year.