The euro traded higher in the early European session amidst the imminent prospect for a further increase in utility rates by the European Central Bank (ECB).
The ECB's minutes of correspondence due to be published in the next few hours will be the focus of the market although it is unlikely to show any signal from the ECB to tighten.
This is because most of the clues stated by basic gossipers are in layman's speech and outside of police correspondence.
Markets are now placing expectations that the central bank will begin a tightening cycle with the first benefit rate hikes in July, as principal analyst Klaas Knot has said.
Meanwhile, the US dollar, which initially displayed gains in the previous session, slumped again in the early European session which provided opportunities for the euro and pound to increase.
Even so, the market mood was still gloomy which prompted a slump in the stock market following strong Wall Street selling and the safe-haven yen also strengthened.
Soaring global inflation and the ongoing war in Ukraine have sparked concerns that global economic growth may be overshadowed.
Meanwhile, the Aussie dollar still held on to its gains from encouraging readings on jobs data, with Australia's unemployment rate plunging to a nearly 50-year low.
