Heading into the European session, the US dollar continued to extend lower with investor focus directed at the publication of US retail sales data and the speech of Federal Reserve (Fed) Chairman Jerome Powell.
Market sentiment rose slightly on Tuesday after Shanghai announced it had reached zero in Covid-19 infection cases in all counties but plans to start easing restrictions gradually starting May 21 with a target of completely eliminating it by June 1.
Risk -sensitive currencies, the Aussie dollar and New Zealand took advantage of this positive news to bounce back from last week’s touched lows.
The Aussie dollar also got support from a meeting minutes report showing the Australian Central Bank (RBA) will raise its interest rates again in June.
Meanwhile, the pound surged higher after being shown by readings of employment data showing the UK unemployment rate fell to a 48 -year low in the first quarter of 2022.
The euro, on the other hand, traded stable following estimated gross domestic product (GDP) data showing that the European Zone's economic growth increased slightly in the first quarter by 5.1% from expectations of 5.0%.
In addition, the Canadian dollar recorded gains following the weakening US dollar, while also gaining support from the strengthening of world crude oil trade.
