The European single currency climbed against the dollar on Wednesday but gains were limited as concerns ahead Washington's end-of-week deadline to impose tariffs on Chinese imports kept many forex investors on the sidelines.
The yuan was the big mover, gaining 0.8 percent as the Chinese currency continued its recovery from an 11-month low after the central bank took steps to stem its rapid slide.
Currency moves were mostly subdued, however, with the fourth of July Independence day U.S. holiday in the discouraging traders from taking out big positions, not least until there is some clarity about where an escalating trade dispute between the U.S. and China is headed and whether Europe will be dragged in.
EUR/USD rose 0.1 percent to 1.1665. Euro zone business survey data is due at 0800 GMT on Thursday, but moves should be subdued ahead of the non-farm payrolls data at the end of the week.
The dollar fell 0.2 percent against a basket of six major currencies at 94.505 ahead of the U.S. Independence Day holiday, after notching up three consecutive months of gains.
Both the yuan and Chinese equity markets have been on edge ahead of July 6, when U.S. tariffs on $34 billion worth of Chinese goods take effect. Beijing has said it will retaliate with tariffs on U.S. products.
