The pound plunged lower after published UK jobs data was somewhat mixed in the three months to January.
Although, the unemployment rate in the UK dropped to 5%, from 5.1% in the previous period, but unemployment claims were very high and the average income index failed to surpass expectations of an increase.
The unemployment rate is also seen to be still at its highest level in 5 years as the country is still under the implementation of coronavirus restrictions.
The strength of the greenback dollar at the opening of the European session was also the cause of the sinking of trading of the pound and most other major currencies following risk-off sentiment in the market.
Tensions between the United States and China, spread to Europe after the European Union (EU) and the UK joined Canada in imposing sanctions on Chinese officials following human rights issues against the Uighur Muslim minority in Xinjiang.
Following that, commodity currencies were also affected by this issue by registering a significant decline in today's trading session.
The kiwi dollar, which has been pressed by New Zealand Prime Minister Jacinda Ardern’s announcement to introduce the latest aid package to control rising house prices, sank lower due to the strengthening USD.
The euro is back below 1.19000, with market focus now on Federal Reserve (Fed) Chairman Jerome Powell's speech tonight.
