The US dollar remained flat in the European session as investors braced for the release of US inflation data.
US consumer inflation is expected to jump higher again in August by rising to 3.6% year-on-year from 3.2% recorded in July.
This could drive the US dollar to trade higher, and the opposite situation will occur if inflation continues to show a decline.
This important data will be an important indicator for the upcoming FOMC policy meeting next week.
Investors now expect the Federal Reserve (Fed) to keep interest rates unchanged at its next meeting, however, its next move in November remains a question mark.
Meanwhile, the euro remained hovering around the same price as investors took a cautious approach ahead of the European Central Bank's (ECB) policy meeting tomorrow (Thursday).
Next, the pound traded on a gloomy note after UK gross domestic product (GDP) data showed a bigger-than-expected contraction in July.
On the other hand, the Aussie and New Zealand dollars traded slightly lower following the decline recorded in the Asian session. Investors will focus on the Australian jobs data that will be published tomorrow morning.
Additionally, the yen remains hovering around lows with the market still awaiting intervention from the Bank of Japan (BOJ).
