The greenback ticked up in the European trade on Thursday, recovering from the earlier session dips that followed Fed’s hints for rate cuts in September, while sterling slumped before BOE meeting scheduled today for interest rate decision.

The dollar index that gauges the greenback versus its major pairs inched up 104.154, post falling by 0.4% the earlier day. The index hit a trough in July at 1.7% in July, its poorest monthly performance of the year.

Federal Reserve held interest rate steady on Wednesday, as largely anticipated but signalled for a dovish stance in September.

More hints will be captured on the 14th of August upon the release of the inflation report.

Thursday will see the release of various economic data, including weekly jobless claims, June construction spending, and the ISM Manufacturing report for July. However, the primary attention is on Friday’s highly anticipated monthly Non-Farm Payroll report.

EUR/USD dropped by 0.4% to 1.0783, Following data that revealed eurozone manufacturing activity remained in contraction in July, supporting that ECB may need to adopt a dovish stance once again this year.

GBP/USD plunged by 0.7% to 1.2767, with the pound sliding significantly before BOE policy meeting.

USD/JPY slumped by 0.2% to 149.66, "With the yen gaining strength after BOJ hiked interest rates to their highest point in 15 years, and the Federal Reserve contemplating rate cuts as US inflation subsides.