The US dollar rose slightly at the opening of the European session, with it trading stronger against most major currencies.
In the previous Asian session, the US dollar depreciated after rocketing higher following the hawkish remarks of Federal Reserve (Fed) Chairman Jerome Powell.
This decline may have been due to a price correction after the previously recorded sudden spike. At the time of writing, the dollar index is seen stabilizing around the 96.00 price level.
Moreover, growing concerns about the Omicron coronavirus variant are also likely to be a factor for the USD to depreciate and give way to the risk currency making gains.
Earlier, Powell had hinted that the central bank would discuss to accelerate a reduction in bond -buying purchases at its December edition policy meeting.
This has supported the USD to re -strengthen amid the threat of Omicron which is said to be a high risk of infection surges around the world, by the World Health Organization (WHO).
Meanwhile, the euro, which showed gains in the Asian session, declined slightly with the price hovering at 1.1300 against the greenback dollar. The pound depreciated slightly at 1.3280 following the gains by the US dollar.
The publication of the US private sector ADP employment report and the making of the ISM survey tonight, will be the main focus of investors while awaiting the NFP data on Friday.
Meanwhile, Central Bank of England (BOE) Governor Andrew Bailey and Chairman Jerome Powell will speak tonight in separate events.
Any statement on monetary policy setting or the threat of the Omicron variant could lead to more aggressive movements for both the pound and USD.
