Investing.com - The euro was little changed against the U.S. dollar on Wednesday, after consumer price inflation in the euro zone was revised up unexpectedly in August as markets focused on the Federal Reserve's upcoming monetary policy statement.
EUR/USD dipped 0.05% to 1.2957, remaining supported above the 14-month low of 1.2858 reached early last week.
Eurostat said consumer price inflation rose 0.4% last month, up from a preliminary estimate of 0.3%. Euro zone inflation rose by 0.4% in July. The rate remains firmly below the European Central Bank's target of near but just below 2%.
Month-over-month, consumer prices inched up 0.1% last month, in line with forecasts and following a 0.7% decline in July.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose 0.9% in August, meeting forecasts and unchanged from an initial estimate.
Meanwhile, the dollar remained broadly supported by expectations for an early hike in U.S. interest rates, while expectations for continued monetary stimulus in European and Japan pressured the euro and the yen lower.
The Fed was expected to cut its asset purchase program by another $10 billion later Wednesday, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.
Elsewhere, the euro was lower against the pound, with EUR/GBP edging down 0.13% 0.7953.
In the U.K., data eaelier showed that the claimant count fell by 37,200 last month, compared to expectations for a decline of 30,000 people. July’s figure was revised to a drop of 37,400 people from a previously reported decline of 33,600.
The report also showed that the rate of unemployment declined to 6.2% in the three months to July, the lowest level since December 2008, compared to expectations for a reading of 6.3% and down from 6.4% in the three months to June.
Separately, the minutes of the Bank of England's September policy meeting showed that members votes unanimously to keep the asset puschase facility program on hold.
However, members Martin Weale and Ian McCafferty voted for the second consecutive time to raise interest rates to 0.75% from a record-low 0.5%.