Counting down to the publication of the US inflation report, the US dollar continued to show limited movement in the European session.
Against a basket of major currencies, the dollar index, which measures the strength of the greenback, slipped below 108.00.
Investors are now taking a cautious approach as weak expectations for US inflation in August may provide a new outlook for policy setting by the Federal Reserve (Fed).
Annual inflation data scheduled to be released at the New York session later, is expected to record a lower increase to 8.1% compared to 8.5% recorded the previous month.
While awaiting the publication of the data, investors were given a first look at the UK jobs report released at the opening of the European session.
On an encouraging note, the UK unemployment rate unexpectedly fell to a new 48-year low of 3.6% in July, while wage growth rose more than expected.
This in turn has given the pound a boost, further away from the 37-year low it touched last week.
In addition, the Aussie dollar also edged higher while the New Zealand and Canadian dollars moved flat amid a weakening US dollar.
