The release Thursday of May's consumer price index is now crucial, with warnings that a big miss to the upside of the 4.7 percent forecast would ramp up expectations of policy tightening.
The ECB is expected to keep policy settings steady, but the euro is likely to be sensitive to changes in the bank's economic forecasts or any signal that the pace of bond buying could be reduced in months ahead.
Surging demand for raw materials lifted growth in China's imports to its fastest pace in 10 years in May, although export growth slowed more than expected as COVID-19 cases disrupted major ports.
Also this week is Chinese trade balance data, which could give a reading on the fundamental forces behind the yuan's rapid rise, while the market's focus for the ECB is on whether the bank adjusts the pace of its bond buying programme.
The US dollar index, which measures the greenback against a basket of six major currencies, rose 0.7% on Thursday to stand at a three-week high of 90.574 on Friday.
Indeed speculators in March flipped rapidly into short yen positions and Japanese currency has been the biggest major loser against the dollar during 2021, dropping almost 6%.
Those employment shortcomings will be front and centre of investors' minds on Friday with the release of nonfarm payrolls numbers for May, after April's much-weaker-than-expected reading sent the dollar index slumping 0.7% on May 7.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 97.84, weaker than the previous day's 97.88.
The dollar initially traded lower on the report, in which ISM said manufacturing's growth potential continued to be hampered by worker absenteeism and temporary shutdowns because of shortages of parts and labor.
The case for some sort of tapering was enhanced by data, which showed growth was likely stronger than many expected in the first quarter, while super-low rates are fuelling a boom in house prices and borrowing.
The RBA also appears largely unconcerned by market expectations of inflation rebounding. Like the Fed, this may reflect a belief that any near-term inflation will be essentially transitory."
Alvin Tan, Asia FX strategist at Royal Bank of Canada in Hong Kong, said Beijing may be "expected to continue leaning against yuan strength", with such an investor outlook seen in a rebound in options market.
Economists expect core PCE (personal consumption expenditures) prices jumped 2.9% year-on-year in April, compared with a year-on-year rise of 1.8% a month earlier.