The US dollar continued to hover around a 2 -and -a -half -month low against a basket of major currencies as the market awaits the release of US inflation data tonight.
Entering the European session, price movements are still slow with most major currencies again showing gains.
However, the gains displayed were somewhat limited as investors took cautious steps ahead of the release of US inflation data.
Earlier, expectations of higher inflation to be recorded by the U.S. economy have suppressed trade in the stock market, and pushed treasury yields for the year to rise again.
10 -year bond yields, which rebounded above 1.6%, also boosted the US dollar before stagnating in the European session.
Meanwhile, the euro continued to maintain its consolidation above 1.2100 against the US dollar despite a slight decline in early trading today.
If inflation readings fail to stimulate the rise of the US dollar, the euro is expected to rise higher.
Moreover, the Aussie and New Zealand dollars are seen struggling to continue their upward momentum by continuing to trade lower against the US dollar.
The Canadian dollar remained strong at a 3 -and -a -half -year high, supported by strengthening world crude oil prices following OPEC's bright outlook on global fuel demand.
