LONDON, Dec 12 Reuters The dollar edged lower on Monday but losses were contained by data last week that showed U.S. wholesale inflation rose more than expected last month, reinforcing the view that the Federal Reserve may have to keep interest rates higher for longer.

The U.S. currency made the most upward headway against commoditylinked currencies like the Australian and New Zealand dollars, but briefly rose as much as 0.5 against the pound after data showed the UK economy recovered in October from a public holiday for Queen Elizabeth39;s funeral, but still pointed to a bleak outlook.

Sterling was last down 0.1 at 1.225, having dipped to a session low of 1.2207, and was down 0.1 against the euro at 86.01 pence.

This week is one of the most macropacked so far this year, with four major central banks holding their final policy meetings of the year, plus consumer inflation data from the United States that could be instrumental in determining the outlook for U.S. interest rates and the dollar.

The U.S. Federal Reserve, the European Central Bank, the Bank of England and the Swiss National Bank will all release rate decisions.

With any luck, one would hope that by end of the week, markets can probably revise down a bit their expectations as to where Bank of England and ECB rates will peak and be confident that the Fed is going to go 5 or north of that, Berenberg economist Kallum Pickering said.

Thats really is going to be an interesting development across all asset…