The euro and dollar were relatively muted on Wednesday as forex traders took a breather ahead of the outcome from Thursday's European Central Bank policy meeting, which may set the course for currency markets following the strong moves witnessed since last month's U.S. election.
EUR/USD was little changed at 1.0725 after slipping 0.5 percent overnight. The dollar recorded gains against sterling and the Aussie while EUR/GBP was up 0.4 percent above 0.8500.
The single currency had plummeted 1.0505 on Monday, its lowest since March 2015, in a knee-jerk reaction after Italian Prime Minister Matteo Renzi lost a referendum on constitutional reform. However, it quickly bounced back to a 3-week high of 1.0797 on the same day as a worst-case political scenario for Rome appeared to have been averted for the time being.
USD/JPY was up slightly to 114.15 yen after edging up about 0.2 percent overnight following a modest rise in U.S. bond yields. It was still some distance from the week's high of 114.775 touched on Monday.
AUD/USD fell more than half a percentage point to 0.7403, after third quarter gross domestic product (GDP) data showed the country's economy shrank for the first time since 2011.
