Entering the European session, the US dollar slightly slowed its progress by trading slightly lower than the latest 20-year high it reached at the beginning of the Asian session.
This gives some room for most other major currencies to breathe again after being pushed deep to the bottom of the 'ocean'.
However, the king of the currency is still strengthening with the support of the PMI data reading of the US ISM service which shows that the country's economy is not in recession.
Focusing on investors this session will be the Bank of England's (BOE) monetary policy hearing where the governor and several policymakers will testify before the Parliamentary Treasury Committee.
The pound traded steady ahead of the hearing, while the euro edged up slightly from a 20-year low it hit on Tuesday.
Meanwhile, the Aussie dollar fell to a 2-month low even as Australian growth data showed the economy growing strongly in the second quarter of 2022.
The antipodean currency also failed to capitalize on the Reserve Bank of Australia's (RBA) decision to raise interest rates to a 7-year high at its September policy meeting.
In the meantime, the Bank of Canada (BOC) policy meeting that will take place in the New York session is now the focus of the market which is expected to raise rates by 75 basis points.
The expectation, however, failed to lift the Canadian dollar which continued to trade weaker at the weakest level in 2 months compared to the US dollar.
