US Dollar was nearly unchanged against other Majors, US taking a softer approach on China investment restrictions.

The US Dollar was nearly unchanged against other major currencies, as overnight gains were capped amidst conflicting signals from Washington regarding the proposal to restrict Chinese investment as the unpleasant U.S.-China trade row kept financial markets on edge.

Moreover, The Greenback saw some support after U.S. President Donald Trump unexpectedly took a softer approach rather than applying a China-Specific investment restriction, the president said on Wednesday, that he would implement a strengthened national security appraisal process to impede Chinese acquisitions of sensitive American technologies.

The U.S. Dollar index, which measures the Greenback’s strength against a basket of six major currencies traded at 95.44 at 09:30 GMT.

The Euro added 0.09 percent to the Greenback to trade at 1.15433 EURUSD to 09:30 GMT after losing more than 0.80 percent on Wednesday, to end the session at 1.15337 EURUSD. Weighed down by political uncertainty in Germany.

German Chancellor Angela Merkel’s fragile coalition government faces potential collapse as the Christian Social Union (CSU), her Bavarian ally, has threatened to defy her and impose border controls unless their demands to reduce Germany’s immigration burden are met.

At the European Council Summit later on Thursday, Merkel will try to secure agreements on immigration on a continental level to appease the CSU.

Over in the United Kingdom, the Sterling lost 0.17 percent against the Greenback, to trade at 1.32004 GBPUSD at 09:30 GMT, continued to fall after incoming Bank of England policymaker voiced caution over the Kingdom ’s promptness for higher interest rates and the cloud of uncertainty regarding the impact of Brexit on the economy.

Regarding safe-haven assets, the U.S. Dollar advanced against its yen counterpart on Thursday as weak economic data released overnight weighed on the Japanese currency.

Japanese economic released data the during Asian session showed that retail trade declined by 1.7 percent month on monthly in May, its fastest decline in 21 months and beating market estimates of 0.8 percent decline. Additionally, Japan’s large retailer’s sales retreated 2.0 percent month on month in May.

The Greenback added 0.12 percent at 110.39 USDJPY at 09:30 GMT

The commodity-linked Australian, New Zealand and Canadian Dollars were lower, as copper price continued to decline.

The Canadian Dollar was little changed against its U.S. counterpart on Thursday; The USDCAD edged up 0.01 percent to trade at 1.33437 at 09:30 GMT.

Over in Australia and New Zealand, The Aussie Dollar fell by 0.06 percent against the Greenback to trade at 0.73329 AUDUSD at 09:30 GMT, Meanwhile the Kiwi Dollar lost 0.55 percent to trade at 0.6756 NZDUSD.