Mixed trading was seen by the king of the US dollar currency earlier in the week after closing lower on Friday.
The drop in commodity prices last week, to some extent helped allay concerns over inflationary pressures and pushed equity markets to rise as well as the USD safe-haven to decline.
Slight risk off sentiment can be seen in today’s Asian session, where the Aussie and New Zealand dollars traded lower against the US dollar and the yen.
This may be driven by a gloomy outlook on the global economy when the International Monetary Fund (IMF) lowered its growth forecast on the United States, saying the country has little chance of avoiding a recession.
Meanwhile, the issue of the Russia-Ukraine war rose again after the G7 nations gathered over the weekend to add further pressure on Moscow by imposing more sanctions.
At the same time the European Union (EU) is also concerned about the possibility of a complete shutdown of Russian gas supplies to its member states, which could make it difficult to face the coming winter.
The euro however brushed aside those concerns and capitalized on the depreciation of the US dollar to offset losses recorded after being disappointed by European Zone manufacturing and services PMI data last week.
The pound, meanwhile, remained flat amid the absence of new catalysts to stimulate more aggressive movements of the currency.
