The US dollar moved flat as all focus of the European session turned to the UK's new Finance Minister on the government's fiscal plans.
Jeremy Hunt, who replaced Kwasi Kwarteng last Friday, will reveal how the government will pay for the plans set out in the budget at 6pm local time.
Ahead of Hunt's speech, the pound was trading higher at around 1.1276 against the US dollar.
Hunt, a former foreign and health secretary, has pledged to win back the UK's economic credibility by taking full account of the government's tax and spending plans.
Last Friday, Prime Minister Liz Truss made a U-Turn in her fiscal plans, saying corporate tax would rise to 25% from April next year.
In Kwasi Kwarteng's version of the mini-budget, the tax was supposed to be frozen at 19%, while also implementing other tax cuts that have since affected financial markets.
Meanwhile, the Bank of England (BOE) has signaled to consider a possible larger interest rate hike at its next meeting.
The central bank also confirmed that all bond purchases on Friday (October 14) were as announced last week.
Meanwhile, the greenback traded little changed against most majors ahead of the opening of the New York session which is expected to be more active.
