The euro had reached a high of $1.1285 earlier this month, its highest level in almost seven months.
But recent polls predicting outcomes ranging from a majority for the Conservatives to a "hung" parliament have seen sterling slip from the $1.30 mark it hit last month.
Against the yen, the greenback was up 0.18 percent to 109.99 yen, after rising to a two-day high of 110.38 yen.
Sterling traded near a two-week high in early trade this morning, supported by expectations that United Kingdom prime minister Theresa May's party will win a majority in Britain's general election.
USD/CAD is supported at 1.3468 levels and is trading at 1.3495 levels.
Gold slipped on Thursday after the euro lost ground against the dollar and as investors awaited the outcome of Britain's national election and testimony from former U.S. Federal Bureau of Investigation director James Comey.
Meanwhile, the euro held steady ahead of a European Central Bank meeting today.
Those troughs were hit after an unexpected surge in USA inventories and the return of more Nigerian crude aggravated concerns about a worldwide glut.
The euro fluctuated after the decision and was down 0.2% at $1.1233 at 1:49pm Frankfurt time. The currency traded in a narrow range of C$1.3486 to C$1.3522.
"We remain tactically short EUR/USD for short-term dip on June reality check - and maintain our call for a summer dip in the cross", Danske advises. The euro hit a one-week low of $1.11995, down around 0.4 percent on the day, as Draghi spoke. That compares with drops in March, April and May. Investors are also awaiting the outcome of the UK's general election.
The greenback clung to slim gains against a basket of currencies on Thursday as investors took stock of former FBI Director James Comey's testimony to the U.S. Senate, while the euro weakened after the European Central Bank kept interest rates on hold.
U.S stocks ended higher on Thursday after former FBI Director James Comey's testimony was seen by investors as having no smoking gun that could affect Donald Trump's presidency.
Seven of the 11 major S&P sectors were lower, with the utilities index's 0.71 percent loss topping the decliners.
Third, a Fed that will likely at the meeting next week confirm its determinedness to move on with hikes and balance-sheet reduction down the road could lead markets to reassess the rather soft pricing of the fed funds rate now in place.
In midday trading, US 10-year Treasuries were last down 5/32 in price, with yields at 2.198 percent, compared with 2.180 percent late on Wednesday. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall.
Europe's broad FTSEurofirst 300 index closed down 0.04 percent at 1,528.71.
Among other retailers, Macy's was up 2.7 percent, Kohl's 4.3 percent and J.C. Penney 1.7 percent.
Brent crude fell 20 cents to settle at $47.87 a barrel, while US crude futures settled down 8 cents to $45.64 a barrel.