The euro advanced against most major rivals in European deals on Wednesday, as Eurozone inflation was revised up in August, and amid a gain in European stocks.

The final data from Eurostat showed that inflation in the euro area rose to 0.4 percent on year in August. This is up from a 0.3 percent gain estimated earlier, but matched the July reading.

Meanwhile, inflation continues to stay below the European Central Bank's target of 'below but close to 2 percent'.

Core inflation that excludes energy, food, alcohol and tobacco rose marginally to 0.9 percent from 0.8 percent in July. The core rate matched the flash estimate released on August 29.

China central bank's stimulus measures and expectations that the Federal Reserve would keep its low rates unchanged for sometime bolstered European stocks.

Media reports suggested that the People's Bank of China would inject liquidity worth 500 billion yuan into the country's top five commercial banks, to counter sluggish growth in the world's second largest economy. These banks will receive a cash credit of 100 billion yuan each for a three-month period, said.

With the Federal Reserve on track to end its bond purchases by October meeting, investors closely await its monetary policy statement for any shift in its dovish stance. Although the Fed has indicated it plans to hold interest rates near zero well into next year, an improving jobs market and signs of inflation could prompt rate hikes earlier in 2015.

The euro edged up to 1.2970 against the U.S. dollar from Tuesday's closing value of 1.2955. The next possible resistance for the euro-greenback pair lies around the 1.305 region.

The euro hit 139.19 against the yen, its highest since July 3. At yesterday's close, the pair was worth 138.82. If the euro continues its bullish trend, 140.00 is seen as its next possible resistance level.

The euro firmed to a weekly high of 1.2113 against the Swiss franc, compared to 1.2084 hit at yesterday's close. Further uptrend may take the euro to a resistance around the 1.22 mark.

The euro that hit near 2-week low of 0.7933 against the pound at 4:30 am ET came off a bit and held steady shortly thereafter. The pair traded at 0.7960 at yesterday's close.

The U.K. unemployment rate continued to fall in July, to the lowest since late 2008, data from the Office for National Statistics showed.

The ILO jobless rate fell to 6.2 percent in May to July, down from 6.6 percent in February to April. The rate was seen at 6.3 percent.

Looking ahead, the U.S. CPI for August and NAHB housing market index for September are set for release in the New York session.

The FOMC's monetary policy announcement will be out at 12:00 pm ET. Fed Chair Janet Yellen will hold a press conference at 12:30 pm ET.

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