The greenback traded stronger at the start of the European session as investors were treated to several key economic data releases from the European Zone and the UK.
Mixed readings in European Zone manufacturing and services PMI data pushed the euro slightly lower to slip below 1.0800 against the USD.
While a missed-than-expected reading in the same data in the UK, pushed the pound down to a four-week low against the greenback.
In the meantime, the US dollar continues to benefit from the support from several Fed policymakers' statements that still support continuing to raise interest rates.
In contrast to Fed Chairman Jerome Powell who has signaled to stop the increase at the next meeting.
The United States PMI data that will be released in the New York session will give an indication to the market whether the Fed can continue to raise rates or otherwise.
At the same time, the focus is also aimed at the report of the minutes of the FOMC meeting that will be published early Thursday morning.
Looking at currency movements in Asia, the New Zealand dollar traded lower amid investor caution ahead of the central bank's policy meeting on Wednesday.
In addition, the Aussie dollar remained trading at around the lowest level, followed by the Canadian dollar which also declined against the greenback.
On the other hand, the yen fell to a six-month low against the stronger US dollar and was also affected by the continued strengthening in the 10-year US treasury yield.
