The dollar started the week on a firm footing with US data this week expected to be strong, while political concerns continued to batter the euro. The dollar rose to seven-month highs against the euro on Friday after breaking through various technical resistance levels and looks set to make further gains this week. German Chancellor Gerhard Schroeder yesterday called early elections for later this year after a crushing defeat in his former regional stronghold of North Rhine-Westphalia. Meanwhile, the latest opinion polls suggest a 'no' vote in this weekend's French referendum on the European constitution looks increasingly likely. "Political uncertainties are set to dampen enthusiasm for euro-zone assets, including the euro this week," said CALYON analyst Frederic Pretet. And with Wednesday's key Ifo survey of German business sentiment not expected to show any improvement, there looks to be little on the horizon that could spark some life back into the European currency. Data out of the US meanwhile looks set to highlight the contrast in fortunes between the US and the euro zone economies. US first quarter GDP figures due on Thursday are likely to see an upward revision, while durable goods orders on Wednesday are expected to show a rise in April after three months of weakness. Elsewhere, there was further bad news for the pound after the latest survey by property website Hometrack suggested that the UK housing market is still failing to show signs of picking up. UK house prices fell by 0.1 pct in May from April, marking the eleventh consecutive month of declines, and were down 2.3 pct on a year earlier, the survey found. A series of disappointing data and surveys out of the UK recently have pointed to an increasing likelihood that the Bank of England could cut interest rates by the end of the year