Despite last week's extremely positive employment figures, Federal Reserve Chair Jerome Powell chose not to materially tighten his tone on inflation in a closely-watched speech, which pushed the dollar to drop on Wednesday.

After Powell's speech, the greenback continued to slip during early Wednesday European trading.

Investors were also grasping remarks made by two German employees of the ECB, who said that interest rates in the euro zone still had room to climb.

In the meantime, traders predict that the ECB will raise rates from their current level of 2.5% to approximately 3.5% in late summer, according to pricing in the futures markets.

EUR/USD having dropped to its lowest level since January 9 at $1.067 during the previous session, it recently gained 0.21% to reach $1.075.

GBP/USD edged up 0.3% to $1.209, recovering after hitting the lowest level in 1 month of $1.196 on Tuesday.

USD/JPY after rising 1.2% in the previous session, the yen increased by 0.15%, with one dollar purchasing 130.88 yen.