The market is still waiting for a clear indication in the market
UK economic data is the focus of the European session
The US dollar could benefit from higher US bond yields
The Asian session saw currency trading little changed as the market headed into the end of the week.
The dollar index, which measures the greenback's strength against a group of major currencies, traded at around 103.30 at the start of the Asian session.
The currency king was seen shrugging off disappointing US jobless claims data, instead taking advantage of support from stronger US 10-year bond yields at 5-week highs.
US jobless claims released in the previous New York session, unexpectedly rose higher than expected last week.
The pound currency rose high in the European session before reducing its gains again in the Asian session today.
Several Bank of England (BOE) policymakers have testified before the UK Treasury Select Committee, where Governor Andrew Bailey, Chief Economist Huw Pill and policymaker Jonathan Haskel expect inflation to fall quickly this year.
The focus is now on the release of UK gross domestic product (GDP) data for December and the fourth quarter of 2022.
The euro remained hovering around the same price, failing to react significantly from German inflation data which unexpectedly rose lower than expected in January.
Meanwhile, yen trading faces uncertainty ahead of the announcement of Bank of Japan (BOJ) Governor Haruhiko Kuroda's successor next week.
On the other hand, the Aussie dollar and the kiwi fell back from Thursday's gains.
