The euro was close to balance against the dollar on Wednesday, a day after the greenback fell sharply and as traders await the report of the latest Fed meeting later in the day.

Around 09:15 GMT (11:15 CET), the euro gained 0.14% against the greenback, to $1.1948, after reaching a high in more than two years the day before.

“All the focus is on the U.S. dollar, which has begun a general downturn in currency markets,” explained Jeffrey Halley of Oanda.

The “dollar index,” which measures the performance of the greenback against a basket of currencies, has lost around 5% since the beginning of July, and more than double since its annual high reached on March 20.

It is changing to its lowest level in more than two years.

The movements in the foreign exchange market suggest that “monetary policy expectations remain essential” for traders, explained Derek Halpenny, an analyst at MUFG.

The report of the latest monetary meeting of the US Federal Reserve (Fed) is expected later today.

It “could pave the way for an evolution of the Fed's monetary policy in September, with the establishment of an average inflation target,” said Ipek Ozkardeskaya of Swissquote Bank.

In addition, the pound remained stoic when the latest figures for inflation in the United Kingdom were announced, which accelerated to 1% in July over one year, according to the National Statistics Office on Wednesday.

It had fallen to 0.5% in May during the lockdown, the lowest since June 2016.

“The resumption of the Brexit negotiations, which seem to have new problems,” was also not likely to change the pound, pointed out Michael Hewson, of CMC Markets.

The negotiating teams are meeting in Brussels on Wednesday for a 7th session, which will end on Friday, after a previous session with no real progress in London at the end of July.

Around 09:15 GMT (11:15 CET), the pound sterling was stable against the single currency at 90.15 pence per euro.

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09:15 GMT 21:00 GMT

EUR/USD 1.1948 1.1931

EUR/JPY 125.89 125.77

EUR/CHF 1,0778 1,0783

EUR/GBP 0.9015 0.9012

USD/JPY 105.38 105.41

USD/CHF 0.9021 0.9038

GBP/USD 1,3254 1,3239