Tuesday saw a decline in the greenback ahead of Federal Reserve Chair Jerome Powell's speech, meanwhile the pound bounced due to indications of a robust housing market.

The dollar index which gauges the US dollar versus its major pairs slumped by 0.1% at 104.275.

German factory orders surged by 1.0% on a monthly basis in January, outpacing the forecasted decline of 0.9%, and the gain for the previous month was revised up to 3.4%.

EUR/USD dipped by 0.1% to 1.0674 post surging the earlier night by 0.5% the as the Austrian central bank governor Robert Holzmann's proposed interest rate hike by 50 basis points to tame the soared inflation.

GBP/USD climbed 0.1% to 1.2029 following news that U.K. house prices increased 1.1% in February, the fastest monthly rate since June.

USD/JPY plunged by 0.2% to 135.62 as data revealed that Japan's wage growth significantly slowed in January, easing pressure on BOJ to tighten monetary policy.