Heading into the European session, the US dollar traded weaker around a 7-month low against its main rival with investors now awaiting a speech by Federal Reserve (Fed) Chairman Jerome Powell.
In addition to Powell, Bank of Japan (BOJ) Governor Haruhiko Kuroda and Bank of Canada (BOC) Governor Tiff Macklem will also address the central bank conference in Stockholm during the New York session.
Investors will be watching for Powell's remarks which will offer any indication of the Fed's next policy-setting direction.
For now, the market sees the probability that the central bank will implement a 25 basis point increase in its interest rate in February.
Nevertheless, investors remain wary of any possibility that will come out of Powell's 'mouth' regarding interest rates.
Looking at the broader market development, the risk currency is still supported to strengthen at the highest level from the weakness of the US dollar and the positive sentiment of China.
The euro and pound were flat in the European session with each trading at their strongest 7-month and 3-week highs.
On the other hand, the Aussie and New Zealand dollars still maintained their previous gains despite slightly declining in the current trading session.
The yen and Canadian dollar also traded flat amid investor caution ahead of the BOJ and BOC Governor's speeches in the coming session.
