The greenback recovered on Wednesday following the previous session sell off, with traders cautious closely watching on the next economic figures to find out more hints regarding the interest rate trajectory.

The dollar index that gauges the greenback versus its major pairs advanced by 0.2% higher at 105.695, having slumped by 0.4%, dipping to the lowest level not seen since the 12th of April.

The cooling disruptions in the Middle East, with Iran implying less intentions to further retaliate after Israel’s attack the previous week, drove the safe-haven greenback to drop from its latest peaks.

On Tuesday, however, the greenback's decline was mostly due to data indicating a slowdown in U.S. business growth, with activity falling to a four-month low in April.

Eyes are now on GDP figures for Q1 scheduled to release on Thursday, and the personal consumption price expenditures index, the Fed's favorite measure of inflation on Friday, could trigger further moves.

EUR/USD slumped 0.1% to 1.0689, following a tick up of 0.5% after the release of business activity figures in the eurozone advanced at its quickest pace in almost a year, primarily because of a rebound in the service.

GBP/USD slumped by 0.1% to 1.2430, dipping after gains of around 0.8% in the previous session, leveraging overnight figures demonstrating that British businesses rebounded with their quickest growth in activity in almost a year.

USD/JPY edged up 0.1% to 154.89, trading close to 34-year peaks and anticipated reaching the 155 level.