The U.S. dollar was higher against the euro on Wednesday, as weak data out of the euro zone fuelled concerns over the deepening impact of the sovereign debt crisis on the region’s economy, but morning losses were erased later in the afternoon.
Meanwhile, European Central Bank President Mario Draghi is currently at a meeting in Germany’s central bank, which is to be followed by a press conference.
Later Wednesday, the Federal Reserve is to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.
Elsewhere, the Sterling found support after Bank of England Governor Mervyn King said Tuesday that policymakers would have to think "long and hard" before implementing further quantitative easing measures.