Investor vigilance ahead of the publication of the US NFP jobs report, constrained trading of most major currencies from continuing to record gains.
The euro rose higher after a hawkish statement from European Central Bank (ECB) President Christine Lagarde, stuck at around 1.1450 against the US dollar during the European session.
Lagarde unexpectedly changed his dovish view earlier by saying inflation risks are seen to continue for a longer period of time and did not rule out the possibility of an interest rate hike by the end of the year.
Meanwhile, the pound fell back below the 1.3600 price it reached in the previous session, after investors digested the results of the Bank of England (BOE) which met expectations for a rate hike by 25 basis points to 0.50%.
Examining the movement of the currency king, the dollar index showed a slight increase but remained around the two -week low of 95.32 against the US dollar.
In addition to the greenback, loonie dollar trading was also the focus of the market awaiting Canadian jobs data in the New York session. Like the NFP, it is also expected to show slower growth in January.
On the other hand, the Aussie and New Zealand dollars also reduced gains following the weakness of the greenback dollar earlier, by displaying a decline in the European session.
