With only a few hours left until the policy decision of the FOMC meeting in the early hours of the morning, the US dollar continued to display a lackluster action in the European session.
The United States' consumer inflation (CPI) figure, which fell to a 2-year low in May, has strengthened expectations for the Federal Reserve (Fed) to keep its interest rates unchanged.
Even so, the market is also preparing for any possible move by the Fed, especially after the surprise of the two central banks of Australia (RBA) and Canada (BOC) last week.
In addition, investors will also pay attention to Chairman Jerome Powell's follow-up statement regarding the next policy direction.
Before that, the market will look at the release of US producer inflation (PPI) data first tonight.
Tracking currency movements in the European session, the dollar index, which measures the greenback's strength against six major currencies, was down at 103.17 (at the time of writing).
Meanwhile, the euro remained trading strong at a three-week high against the greenback despite a slight dip in the Asian session.
The pound continued to rise higher following the publication of gross domestic product (GDP) data which showed that the UK economy was growing again in April.
On the other hand, the Aussie and New Zealand dollars continued to maintain their strengthening momentum at the strongest five-week and three-week levels respectively against the USD.
The Canadian dollar remained at its strongest in four months, while the yen was flat with price movements limited by stronger US 10-year bond yields.
