Unable to withstand the uncertainty, the US dollar retreated first, posting lower losses early in the European session.
The dollar index, which measures the greenback's strength against most major currencies, traded at 106.15 after shedding around 0.7%.
The release of US producer price index (PPI) data is now the main focus of investors which is expected to show a reading that remains high in October.
Also in the focus of investors are the statements from several other policy makers of the Federal Reserve (Fed) namely Lisa Cook and Michael Barr to get a signal about the setting of the future monetary policy.
Looking at other currencies, the euro traded stronger at a three-month high against the greenback ahead of the release of Germany's ZEW survey of economic sentiment data.
Meanwhile, the pound traded higher despite a dismal reading of UK employment data in the third quarter.
On the other hand, the Aussie and New Zealand dollars also maintained strengthening momentum to continue trading at two-month highs.
