After being disappointed by the fact that the Chair of the Federal Reserve (Fed), Jerome Powell, investors are now turning their focus to the publication of US inflation data.
The European session's open, saw the greenback trade steady around two-month lows against its major rivals.
The US dollar is down after comments from Powell reiterating the expectation that asset purchases will end in March and that rate hikes are expected to increase after that.
However, Powell's vigilance in giving indications for a reduction in the central bank's balance sheet, caused investors to be a little disappointed as it was seen that the Fed was still unwilling to act more aggressively.
Investors are now taking cautious steps ahead of inflation data which is expected to show slower growth compared to the previous month.
The pound continued to maintain its strengthening momentum to be at a two-month high versus the greenback.
Meanwhile, the euro currency remains constrained to register higher gains following the absence of a clear leader from the European Zone.
On the other hand, the Aussie dollar and kiwi traded steady after posting gains rather than the depreciation of the US dollar in the previous session.
