The start of the market over the weekend saw the greenback dollar trade continue to move slowly around a 16 -month high against its main competitor.
U.S. jobless claims data slightly disappointed the market with readings that deviated from market expectations. A total of 268,000 interest claims were made last week, compared to expectations of 260,000.
Against most major currencies, the dollar index traded slightly higher at 95.60 in the Asian session.
The euro bounced back from a 16 -month low by trading at 1.3560 against the USD after declining to 1.1263 on Wednesday, taking advantage of opportunities from the resting greenback.
Market focus will shift to European Central Bank (ECB) President Christine Lagarde’s speech at the European session.
The pound, meanwhile, continued to maintain its gains on the back of strengthening UK inflation and jobs data that revived market expectations for the Bank of England (BOE) to raise its interest rates.
UK retail sales data this afternoon will be the focus of pound currency investors who are expected to show an improvement after recording a contraction in the previous one.
On the other hand, the kiwi dollar became the best performing G10 currency after a survey by the New Zealand Central Bank (RBNZ) showed inflation expectations in the country rose to an 11 -year high in the fourth quarter.
According to a Reuters survey, the bank is expected to raise interest rates by another 25 basis points to 0.75% at a policy meeting next week.
