Calm movements in the markets were on display in the European session as all eyes now turned to US inflation data.
The US dollar's giant currency remained sluggish, seeing the dollar index trade hovering around 103.17 against a basket of major currencies.
On the alert, markets forecast US consumer inflation to rise 6.2% year-on-year in January from 6.5% previously recorded.
Turning to major currency developments, the yen pared some losses after sliding to a 6-week low against the greenback.
As expected, the Japanese government nominated Kazuo Uedo as the next governor of the Bank of Japan (BOJ) on Tuesday.
In the meantime, the euro continued to benefit from the weaker US dollar trade with modest gains, but remained hovering around the lows.
The pound also rose after newly published UK employment data showed wage growth continued to pick up in the last 3 months of 2022.
For now, investors see the latest data reading will prompt the Bank of England (BOE) to act once again in raising interest rates next month.
Meanwhile in Asia, the Aussie dollar traded flat while the New Zealand dollar slipped following a drop in inflation expectations data for the first quarter to 3.3% from 3.62%.
Overall, despite fluctuations in the market, the movements exhibited were limited following investor caution ahead of the US inflation data.
