Going into the European session, investors are now shifting their focus to the release of the United States' Gross Domestic Product (GDP) data for the second quarter to prove Federal Reserve (Fed) Chairman Jerome Powell's statement at his policy meeting.
Earlier, Powell said that he did not see that the US economy is in recession because of the continued strong job market.
In fact, he even hinted at the possibility of slowing rate hikes even as he backed another bigger rate hike in September.
However, the decision is dependent on current and future economic data.
The US currency's king dollar has fallen sharply following Powell's remarks, seeing it trade around three-week lows against major rivals at the time of writing.
Meanwhile, the euro is still holding on to gains made in the previous session and the pound is trading at a four-week high due to the weakness of the USD.
Investors continue to maintain expectations to see a 50 basis point increase in interest rates by the Bank of England (BOE) at its meeting next week.
Looking at risk-sensitive currencies, the Aussie dollar remained firm at a five-week high while the New Zealand dollar was positive at a one-week high against the USD.
On the other hand, the yen also traded higher, taking advantage of the decline in US 10-year bond yields following the Fed's decision.
