The first day of US President Joe Biden at the White House was welcomed by investors amid high hopes for a massive fiscal stimulus move.
However, as the market entered the European session, US dollar trading continued to trade weakly although at first it showed a slight increase against a basket of major currencies.
The euro remained stable trading, with investors' focus now on tonight's European Central Bank (ECB) policy meeting.
The ECB is expected to follow in the footsteps of the Bank of Japan (BOJ) to keep interest rates and its asset purchase program unchanged.
However, ECB President Christine Lagarde is likely to warn of high euro exchange rates as well as discuss weak inflation, the impact of the coronavirus on the current economy and prospects for the rest of the year.
So, investors will be more cautious in the face of any possibility if President Lagarde touches on the issue of the value of the euro.
Meanwhile, the pound traded stronger by continuing to rise higher against the greenback dollar, breaking the latest highs it has reached since May 2018.
The pound sterling trade has benefited from positive current sentiment as investors no longer focus on the uncertainty in the Brexit issue as the primary focus of the market.
