Investing.com - The US dollar was lower in early European trade on Monday, but remained needed as a safe haven due to concerns about slowing global growth while a US holiday is likely to limit volatility.

At 2:55 AM ET (06:55 GMT), the dollar index, which measures the greenback against a basket of six other currencies, fell 0.1% to 104.810, not much lower than its highest level in the past two decades. at 105,790.

fall of europeAnalysts at Nomura said in a note that the eurozone, the United Kingdom, Japan, South Korea, Australia, Canada and the United States are likely to fall into recession over the next 12 months, as central banks look to regain control of inflation. Credibility is likely to err on the side of tightening the policy too much.This view has been supported by recent economic data, with US consumer spending, for example, growing much less than expected in May, while gross domestic product (GDP) now of interest to the Federal Reserve in Atlanta fell to 2.1% annually for the quarter. Second.

Fed..don't back downDespite this, Federal Reserve Chairman Jerome Powell last week reiterated the Fed's decision to tame hyperinflation.ING analysts said in a note: “The dollar should continue to rest on fairly solid ground in the third quarter thanks to the Fed rate hikes, and the still-challenging environment for global risk assets due to tight liquidity and concerns about global slowdown.”