Slow movements continued to be displayed by currency markets in the European session, with the dollar greenback hovering at a one-month low.
Due to low liquidity, the market is expected to continue to move slowly amid bank closures in the United States in conjunction with the Juneteenth holiday.
The USD has slipped lower in the past week even after the Federal Reserve (Fed) offered hawkish signals about two more hikes in interest rates this year after keeping them unchanged.
However, Fed Chairman Jerome Powell's testimony before the US Congress this week will be the main focus of investors.
USD weakness has provided broad support for its other major rivals to surge to new highs.
The euro strengthened to a one-month high with prices still underpinned by last week's hawkish indication by the European Central Bank (ECB) to raise rates again in July.
Meanwhile, the pound remained the strongest traded in more than a year as market focus is now focused on the release of UK inflation data on Wednesday and the Bank of England (BOE) meeting on Thursday.
Additionally, the Aussie and New Zealand dollars continued to extend their strengthening at four-month and one-month highs respectively against the US dollar.
Both currencies are now awaiting the next catalyst from China which is expected to cut its interest rates on Tuesday.
In the meantime, the yen continued to trade gloomy at its lowest level since November after it failed to take advantage of the weakness of the US dollar as it was more affected by the continued dovish stance of the Bank of Japan (BOJ).
