The U.S. dollar firmed against its major counterparts in the early European session on Monday, as investors look ahead to the Fed meeting due this week for more clues about an early tightening of monetary policy.

The Fed will begin its two-day meeting on Tuesday, in which the policymakers will discuss a faster tapering of asset purchases to tackle price pressures.

Market participants are waiting to see whether the Fed will signal earlier rate hikes in the wake of elevated inflation.

Investors also eyed central bank meetings in Europe, Switzerland, U.K. and Japan.

The U.S. economic data due this week include retail sales, industrial production, producer prices and jobless claims.

Elsewhere, China will focus on ensuring stability and stick to a prudent monetary and fiscal policy for next year, according to an official statement issued after the annual Central Economic Work Conference.

The meeting called for combined cross-cyclical and counter-cyclical policy adjustments and pursuing a strategy to expand domestic demand.

The greenback rose to 1.3220 against the pound, 1.1272 against the euro and 0.9248 against the franc, following its early lows of 1.3261, 1.1319 and 0.9200, respectively. If the greenback continues its rise, 1.29, 1.10 and 0.94 are possibly seen as its next resistance levels against the pound, the euro and the franc, respectively.

The greenback came off from its prior lows of 113.25 against the yen, 0.6802 against the kiwi and 0.7176 against the aussie, advancing to 113.68, 0.6775 and 0.7140, respectively. The next likely resistance for the greenback is seen around 115.00 against the yen, 0.66 against the kiwi and 0.70 against the aussie.

The greenback touched a 6-day high of 1.2748 against the loonie, from a low of 1.2706 hit at 8:30 pm ET. On the upside, resistance is likely seen near the 1.29 level.

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