Markets in the European session were marked by the continued depreciation of the US dollar ahead of the release of US inflation data, the producer price index (PPI) tonight.
Against a basket of major currencies, the dollar index was muted around 94.00, retreating further from the one -year high it reached last Friday.
The PPI data, to be released in the New York session, is expected to show a 0.6% increase in October from 0.5% previously recorded.
Although the Federal Reserve (Fed) has reduced expectations to raise interest rates, investors are still waiting for inflation data that is forecast to rise higher.
The euro tried to regain a position above 1.1600 against the US dollar, but failed after touching it at the beginning of the European session.
The German and European economic sentiment data of the ZEW survey, which will be released shortly, will be scrutinized by investors ahead of the US PPI data.
In addition, speeches from several key central bank policymakers, including European Central Bank (ECB) President Christine Lagarde, European Central Bank (BOE) Andrew Bailey and Fed Chairman Jerome Powell will be the focus of investors once again at the New York session.
Meanwhile, the pound sterling traded slightly higher at 1.3580, following the depreciation of the US dollar. However, the currency is still around a five -week low.
