The US dollar continues to be under selling pressure as the market heads into the European session, with market focus now shifting to the release of US personal consumer expenditure (PCE) data in the New York session.
This can be seen in the movement of the dollar index which extended its decline lower at 111.68 against the major currencies, far from the highest peak of 114.76 it reached earlier.
European currencies continued to hold on to gains as both the euro and pound traded at one-week highs.
The impact of the Bank of England's (BOE) intervention on Wednesday continued to support the pound to recover from all-time lows.
The Office for National Statistics (ONS) announced UK gross domestic product (GDP) grew 4.4% in the second quarter year-on-year, beating market expectations for a 2.9% increase.
Meanwhile, the euro got a boost from the stimulus package launched by Germany to ease the heat of inflation, while also benefiting from the decline of the US dollar.
On the other hand, the Aussie dollar and kiwi traded flat slightly higher from the two-and-a-half-year lows they touched on Wednesday.
The US PCE data, which is the Federal Reserve's (Fed) choice for inflation measurement, will be scrutinized by investors to determine the central bank's next direction in policy setting.
