I have managed to fix it now and the player moves correctly using distance calculations as its speed:
so the touch distance now affects the player speed by increasing its speed the further away the touch position is and likewise the player slows down as it reaches the touch position.
It was achieved by the following modifications to the events:
Original Events:
Touch> is in touch> Player > move 300*dt pixels at angle (self.X, self.Y, touch.X, Touch.Y)
System> compare two values> distance (Player.X, Player.Y, Touch.X,Touch.Y) > 300*dt
New Events:
Touch>is in touch> Player> move distance ( Player.X, Player.Y, Touch.X, Touch.Y)*dt pixels at angle (self.X,Self.Y,Touch.X,Touch.Y)
System> compare two values> distance (Player.X, Player.Y, Touch.X,Touch.Y) >= 300*dt