The British pound traded close to levels seen last Friday on news that U.K. Prime Minister Theresa May's lead had narrowed ahead of an election next week. With U.K. markets closed yesterday for a bank holiday, the pound last traded at $1.2804.
Meanwhile, the euro edged down to trade at $1.1119 against the dollar. This followed headlines about the Greek bailout and comments made by European Central Bank (ECB) President Mario Draghi while addressing the European Parliament yesterday.
In his speech, Draghi acknowledged growth in the euro zone but said "an extraordinary amount of monetary policy support" remained "necessary."
"It's now only a week out from the ECB meeting and you can't get much clearer than that. The ECB will then unveil its new inflation forecasts; an about turn from the ECB signalling a winding down of QE would be a big surprise to the market," National Australia Bank Senior Economist David de Garis wrote in a note.
Oil prices were mixed after ending the last session cautiously higher following reports of U.S. drillers adding rigs. Brent crude shed 0.27 percent to trade at $52.15 a barrel while U.S. West Texas International (WTI) crude added 0.06 percent to trade at $49.83.
Correction: This article has been updated to accurately reflect the changes in the dollar, the euro, the yen and the pound.