Major currency trading climbed higher in the European market session after gaining support from the weak greenback dollar following Federal Reserve (Fed) Chairman Jerome Powell's statement.
The global stock market also soared with Powell's statement that interest rates would remain low for a long time.
In his second-day testimony in Washington, Powell reiterated the Fed's promise to maintain current policy until there is clear progress towards achieving full employment targets and there is no need to worry about inflation unless there is a steady and worrying rise in prices.
The dollar index fell lower against most major currencies with trading around its 3-year low of 89.87.
However, while most major currencies showed higher gains, the movement of the pound sterling appeared to be somewhat limited around the same price level in today's trading session.
The move against the sterling currency may be due to a warning from the Deputy Governor of the Central Bank of England (BOE) who warned that the pound value could be too high to affect inflation in the UK.
Meanwhile, the euro once again jumped above the price of 1.22000 following a further decline in the greenback dollar at the beginning of the European session. The yen depreciated against the USD due to a 10-year increase in US bond yields.
The release of preliminary estimates of US Gross Domestic Product (GDP) data for the last quarter of 2020 tonight, will be the main focus of the market which is not expected to change much at a low level of around 0.4%.
On the other hand, the Aussie dollar managed to break the 0.8000 price level in the European session, the highest in three years, driven by rising market sentiment and the weakness of the USD.
