The U.S. dollar showed mixed trading against its major opponents in the European session on Wednesday, after the release of nation's consumer inflation data that improved more than forecast in November. Investors awaited the outcome of the two-day Federal Reserve monetary policy meeting due later in the day.

Data from the Labor Department showed that the consumer price index rose by 0.3 percent in November after climbing by 0.4 percent in October. Economists had expected prices to edge up by 0.2 percent.

Excluding food and energy prices, core consumer prices crept up by 0.2 percent in November, matching the uptick seen in the previous month as well as economist estimates.

The Fed will conclude its December meeting at 2:00 pm ET. The central bank is widely expected to leave interest rates unchanged, but investors will pay close attention to the accompanying statement for clues about the outlook for rates.

Market participants focused on developments in U.S.-China trade talks ahead of the December 15 deadline.

The Wall Street Journal reported that Washington is laying the groundwork for a delay in the latest tariffs on China, due to take effect on Sunday.

However, White House economic adviser Larry Kudlow said the "tariffs are still on the table".

The currency climbed against its most major counterparts in the Asian session on Wednesday, following reports that Washington is laying the groundwork for a delay in the latest tariffs on China, due to take effect on Sunday.

The greenback eased off to 0.9848 against the franc, from a high of 0.9861 hit at 7:45 am ET. The greenback may challenge support around the 0.96 mark.

The greenback fell to 1.3174 against the pound, from a 5-day high of 1.3107 seen at 5:15 pm ET. The greenback is seen facing support around the 1.34 mark.

The greenback held steady against the yen, after having pulled back from a 5-day high of 108.86 set at 6:15 pm ET. The pair had ended Tuesday's deals at 108.72.

Data from the Bank of Japan showed that Japan producer prices rose 0.2 percent on month in November.

That beat expectations for an increase of 0.1 percent following the 1.1 percent drop in October.

The greenback reached as high as 1.1070 against the euro, compared to Tuesday's closing value of 1.1092. If the greenback extends its rally, 1.09 is likely seen as its next resistance level.

Looking ahead, at 2:00 pm ET, the Federal Reserve's interest rate decision is slated for release. Economists widely expect the central bank to retain the benchmark rate at 1.50 percent - 1.75 percent.

Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Feb 2024 to Mar 2024 Click Here for more Euro vs US Dollar Charts.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Mar 2023 to Mar 2024 Click Here for more Euro vs US Dollar Charts.