Euro extends losses ahead of Christine Lagarde's testimony

Euro fell in European trade against dollar for another session ahead of ECB President Christine Lagarde's testimony ahead of the European Parliament, expected to include clues on tightening monetary policies and raising rates in the euro zone. 

Dollar is gaining ground amid risk aversion and concerns about Chinese Covid protests, which are casting shadows on economic recovery in the country.

EUR/USD fell 0.5% to 1.0340, after losing 0.15% on Friday, the first loss in four days amid risk aversion.

The pair rose 0.7% last week, the second weekly profit in three as concerns about a widening policy gap between Europe and the US fade. 

Lagarde

As of 14:00 GMT, ECB President Christine Lagarde will testify ahead of European Parliament in Brussels, which might provide clues on the next step by the ECB. 

Lagarde said recently that inflation remains high across the euro zone, and that policy tightening will be carried until inflation is brought back towards 2%.

The Dollar

The dollar index rose 0.4% on Monday for the second session in a row against a basket of major rivals.

China is facing a wave of Covid protests in multiple cities after a deadly fire in western China with the police engaging with hundreds of protesters in Shanghai. 

Such rare protests in the normally authoritarian regime of China raised concerns about economic recovery in the world's second largest economy.