The greenback muted on Wednesday, maintaining a significant part of its overnight gains, the currency benefited from robust consumer inflation figures, which reinforced expectations of prolonged higher interest rates. Meanwhile, the sterling pound remained stable ahead of the release of key GDP data.

The dollar index that gauges the greenback versus its major pairs dipped a bit, maintaining the majority of their gains from the previous night following a consumer price index inflation reading that surpassed expectations.

EUR/USD is gearing towards lower than 0.1%.

GBP traded flat on Wednesday at 1.2792, while awaiting numerous economic figures.

Later in the session, Gross Domestic Product (GDP) data, industrial production figures, and trade data for January are all expected to be released, providing further insights into the state of the British economy amid its struggle with sluggish growth.

The GDP data, in particular, will receive close attention, especially following the economy's slightly smaller contraction than anticipated in December. Analysts anticipate a month-on-month expansion of 0.2% in January.