Euro rose in European trade against a basket of major rivals, amid attempts to recoup from six-week lows against the dollar ahead of crucial euro zone data.
Such data will provide important clues on the health of the European economy in the first quarter of the year, which will help markets assess the future of ECB interest rates.
EUR/USD
EUR/USD rose 0.15% to 1.0867, with a session-low at 1.0844, after losing 0.3% on Tuesday, the second loss in a row, hitting a six-week low at 1.0822 amid concerns about the US-Euro zone interest rate gap.
Major Sectors
Later today, investors await data on the euro zone's manufacturing and services sectors to gauge the health of the European economy.
Europe's GDP went through a contraction in the third quarter of last year before recouping in the fourth quarter, with risk factors, including China's slowdown and weakening spending.
The ECB
Later today, the European Central Bank will hold its first policy meeting of the year, fully expected to maintain interest rates unchanged for the third meeting in a row.
Several ECB officials opposed the idea of early interest rate cuts starting next May as inflation and wages continue to present risks.
ECB President Christine Lagarde said at the Davos Economic Forum that euro zone interest rates could be cut in the summer and not spring.
Dr Joachim Nagel, President of the Deutsche Bundesbank, Member of the Governing Council of the European Central Bank, said it's still too early to talk about rate cuts as inflation remains too high.
Robert Holzmann, Governor of Austria's Central Bank, said that Middle East geopolitical tensions and shipping disruptions in the Red Sea constitute a big inflation threat.
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