EURCHF Euro vs Swiss Franc

The euro drifted lower against most major rivals in European deals on Wednesday, as European markets fell amid continued sell-off in oil prices, and traders await the outcome of the Federal Reserve's meeting, due later in the day.

Most market participants expect the Fed to change its forward-looking policy statement by removing language that it expects to keep interest rates low "for a considerable period."

Crude oil is trading at $55 per barrel, as worries over oversupply continues.

Eurozone inflation came in line with flash estimate in November, final data from Eurostat showed.

Eurozone annual inflation came in at 0.3 percent in November, down from 0.4 percent in October. A year ago, the rate was at 0.9 percent. The November inflation matched flash estimate released on November 28.

The euro retreated to 1.2007 against the franc during European morning deals. The euro is thus edging closer to violate its peg rate of 1.20.

The KOF Swiss Economic Institute upgraded its 2015 growth outlook for the Swiss economy citing improved global conditions and private consumption. The institute also reduced its inflation forecast due to the collapse of oil prices.

In its Winter Forecast, the think tank said the gross domestic product will grow 1.9 percent in 2015 and by 2.1 percent in 2016. The outlook for 2015 was raised from 1.7 percent.

The single currency dropped to 1.2453 against the greenback, lower by 0.4 percent from yesterday's New York session close of 1.2508. Continuation of the euro's downtrend may lead it to a support around the 1.24 zone.

The euro hit a 2-day low of 0.7922 against the pound, after having advanced to a multi-week high of 0.8005 on Tuesday. If the euro-pound pair extends decline, 0.78 is seen as its next support level.

Bank of England policymakers decided to leave its key rate at a historic low of 0.50 percent in a split vote for the fifth straight time at the meeting held on December 3 and 4.

The Monetary Policy Committee voted 7-2 to retain its key rate at 0.50 percent. Ian McCafferty and Martin Weale sought a 25 basis-point hike for the fifth straight meeting.

On the flip side, the European unit held steady against the yen, after recovering to 146.46 in early deals. At yesterday's close, the pair was valued at 145.55.

Japan had a merchandise trade deficit of 891.859 billion yen in November, according to data from the Ministry of Finance.

That beat forecasts for a shortfall of 992.0 billion following the downwardly revised 736.9 billion yen deficit in October.

Looking ahead, U.S. CPI for November and Canada wholesale sales for October are due in the New York session.

At 2:00 pm ET, the Fed will announce its monetary policy decision. Interest rates are seen keeping on hold at 0.25 percent.

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