As investors eagerly awaited the release of US inflation data, the USD giant finally showed an improvement in the European session.
US producer price data, which rose sharply in October, added investor confidence to see a similar strengthening in the Consumer Price Index (CPI) data to be released tonight.
US consumer prices are forecast to rise 0.6% in October, and core inflation is up 0.4%. Meanwhile, on an annual basis, inflation is expected to increase to 4.3% against the central bank's target of 2%.
Also in the spotlight of investors in the New York session was U.S. jobless claims data which is expected to continue to show strengthening in the labor market, with an expected decline of 257,000 last week.
At the time of writing, the dollar index traded up 94.20 against most major currencies.
The pound sterling, meanwhile, continues to be under pressure due to growing uncertainty over the post-Brexit issue, while still being affected by the recent dovish decision of the Central Bank of England (BOE).
While risk -sensitive currencies, the Aussie dollar and kiwi were still trading weak despite readings of Chinese inflation data showing an unexpected increase last month.
Despite rising inflation, economic growth in China is still seen as weak and this raises market concerns if inflation continues to rise.
