The US dollar traded slightly lower at the start of the European session, paring gains made following a stronger-than-expected US NFP jobs data reading.
US jobs unexpectedly rose higher in July with a drop in the unemployment rate adding to evidence of continued strengthening in the labor market in the world's giant economy.
This has rekindled investor expectations to see another series of aggressive interest rate hikes by the Federal Reserve (Fed) with an increase of 75 basis points back on target.
The king of the US dollar, which has recorded a strengthening following the publication of the NFP, exhibited a flat movement in two trading sessions today.
The giant currency is likely to continue its strengthening in the New York session as more investors enter the trade.
Meanwhile, commodity-related currencies including the Aussie dollar, the loonie and the kiwi took advantage of the US dollar's move to erase losses recorded last Friday.
Examining the development of European currencies, the euro and pound traded little changed in line with the greenback's dollar movement amid the absence of a major catalyst to stimulate the two currencies.
