U.S. Dollar Higher Ahead Of Fed Minutes

The U.S. dollar firmed against its most major counterparts in the European session on Wednesday, as investors look forward to the release of the Federal Reserve's minutes from its September meeting, at which the central bank hiked interest rates for the third time this year.

The minutes, due from the September 25-26 meeting, are set to be released at 2 pm ET.

The minutes could shed more details about the pace of the central bank's future rate hikes.

At the meeting, the Fed raised rates by a quarter point to 2 to 2.25% and forecast another rate hike in December.

As per the CME Fed funds futures, the probability of the December rate hike now stands at 77 percent.

Other economic data include U.S. building permits and housing starts, due at 8:30 am ET.

The greenback appreciated to a 9-day high of 0.9939 against the Swiss franc, from a low of 0.9897 hit at 5:15 pm ET. If the greenback rises further, it may find resistance around the 1.01 region.

The greenback climbed to a 6-day high of 1.1526 against the euro, after falling to 1.1580 at 8:45 pm ET. The next possible resistance for the greenback is seen around the 1.14 region.

Data from the Eurostat showed that Eurozone consumer price inflation accelerated in September to exceed the European Central Bank's target of "below, but close to 2 percent", in line with initial estimates.

The consumer price index rose 2.1 percent year-on-year following a 2 percent increase in August. In July, inflation was 2.1 percent.

The greenback reversed from an early low of 1.3193 against the pound, rising to a 2-day high of 1.3100. On the upside, 1.29 is likely seen as the next resistance for the greenback.

Figures from the Office for National Statistics showed that UK inflation slowed in September.

Consumer price inflation came in at 2.4 percent versus 2.7 percent in August. The rate is also below the expected 2.6 percent.

The greenback rebounded to 1.2978 against the loonie, 0.7117 against the aussie and 0.6557 against the kiwi, from its early low of 1.2932,2-week low of 0.7160 and more than a 2-week low of 0.6601, respectively. The greenback is poised to target resistance around 1.31 against the loonie, 0.69 against the aussie and 0.64 against the kiwi.

On the flip side, the greenback held steady at 112.26 against the yen, after having eased from a 5-day high of 112.42 hit at 8:45 pm ET. The pair closed Tuesday's trading at 112.25.

Looking ahead, Canada manufacturing sales for August and U.S. housing starts and building permits for September are set for release in the New York session.

At 12:10 pm ET, Federal Reserve Governor Lael Brainard speaks at the FinTech conference, jointly-hosted by the Aspen Institute and the Federal Reserve Bank of Boston.

Deutsche Bundesbank President Jens Weidmann speaks in Berlin at 12:30 pm ET.

Bank of England Deputy Governor Ben Broadbent will participate in a panel discussion titled "Unconventional Monetary Policies in the Euro Area, Japan, and the U.K." at the Brookings Institution in Washington DC at 1:00 pm ET.

The Federal Reserve will release minutes from its September 25-26 meeting at 2:00 pm ET.