The dollar added to gains in early Monday trading, keeping to 13-month highs vs. the euro and 14-month highs against the British pound. "The gains were predominantly fuelled by buoyant data from the US manufacturing sector which added to expectations of more rate hikes to come from the Federal Reserve," said analysts from Anglo Irish Bank. Trading was thin, however, due to the U.S. Independence Day holiday. The euro eased 0.2% at $1.1923 vs. the dollar and fell to as low as $1.1901. The pound fell 0.5% at $1.7585. "Risks remain to the downside despite the fact that recent EU-12 data has dented market expectations for an early European Central Bank rate cut," said analysts at WestLB. June business confidence figures, such as the Ifo, the ZEW, and the manufacturing PMIs, all have shown increases. Both the ECB and the Bank of England release interest rate decisions on Thursday. While neither is expected to cut rates at the July meeting, there are growing expectations of a cut by the Bank of England in August. The key U.K. interest rate is 4.75%.