Early on Wednesday in European trade, the US dollar began to weaken, giving up some of the gains made during the previous session. However, trading activity was muted as investors awaited further clues about monetary policy from comments given by Fed Chair Jerome Powell and other central bankers.

The dollar index that gauges the greenback versus its major pairs dipped 0.1% to 105.382, after recovering from the lowest level of 104.84 earlier in the week. 

Due to growing optimism that the Federal Reserve has concluded its cycle of interest rate hikes, the dollar saw a severe selloff last week. However, this week has seen some consolidation as several Fed speakers cautioned against becoming complacent.

EUR/USD steadied at 1.0707, eurozone retail sales dipped 0.3% month over month in September, recovering after the previous session's downturn.

GBP/USD muted at 1.2284, post touching the highest level in seven weeks over 1.24.

USD/JPY slipped 0.1% to 150.93.