Tuesday saw a surge in the value of the US dollar, but the pound continued to gain ground in advance of this week's Bank of England policy-making meeting.

The dollar index that gauges the US dollar versus its major pairs ticked up by 0.1% higher at 101.183, steading close to the latest dips.

The U.S. labor market remained resilient in April, according to Friday's stronger-than-anticipated payrolls release, which has led to a slight increase in the value of the dollar.

Trading ranges are constrained, though, as investors anticipate the release of April inflation data on Wednesday. Economists anticipate that the widely-anticipated core consumer price index, which excludes volatile food and fuel prices, will rise by 5.5% on an annual basis, down slightly from the 5.6% increase seen a month earlier.

EUR/USD slipped 0.1% to 1.0999, despite ECB decreasing the pace of its interest rate increases last week, the market is still quite near its highs for the year.

GBP/USD edged up by 0.1% at 1.2633, the price was slightly below the earlier session's one-year high at 1.2668.

USD/JPY slumped by 0.2% to 134.77, with the yen roughly shored up by comments from Kazuo Ueda, who signalled that the central bank will halt its dovish yield curve control policy once inflation touch its 2% target.