The US dollar tried to strengthen again in the European session as the market now turned its attention to the release of ADP jobs data and US manufacturing PMI.
Against a basket of major currencies, the dollar index traded lower at around 104.20.
Earlier, the king of the currency dropped low after being affected by dovish statements from the policy makers of the Federal Reserve (Fed).
Philip Jefferson and Patrick Harker advocated for a temporary halt in interest rate hikes at its upcoming policy meeting.
Even so, investors need to look at the economic data that will be published first, especially the employment and inflation reports.
As an indication of tomorrow's NFP data, investors will look at the ADP report and jobless claims that will be released in the New York session later.
Meanwhile in the European session, investors were shown a decline in European Zone inflation to 6.1% from 7.0% in May.
However, the euro did not react significantly following the report and instead tried to bounce back from its two-month lows.
The pound currency was little changed with the price seen still maintaining the previous gains achieved on Wednesday.
Meanwhile, the Aussie dollar and kiwi remained trading lower, failing to capitalize on good news about the debt ceiling bill that has been passed by the US House.
