GBP appreciated against other major currencies in the European session on Wednesday as concerns about the coronavirus outbreak eased and investors' risk appetite improved.

The latest reports from China revealed the growth pace of new coronavirus cases in China has slowed to the lowest since the end of January. In addition, China’s senior medical adviser said the outbreak might be over by April. The Chinese officials also continued to make efforts to improve sentiment, announcing policy measures that would presumably boost growth. China's Communist Party's standing committee promised to continue to roll out tax-cut measures to alleviate pressure on firms and to enhance the strength of the macro policy adjustment.

EUR traded slightly lower against most major rivals, weighed down by disappointing Eurozone's industrial production data for December. Eurostat reported that industrial production in Eurozone fell 2.1 percent m/m in December after being unchanged m/m in November. Economists had forecast a 1.6 percent m/m decline. That marked the sharpest monthly contraction since February 2016. In y/y terms, industrial production tumbled 4.1 percent, following a revised 1.7 percent decrease in November and missing economist forecast for a 2.3 percent drop. The latest reading matched the December 2018 decline, which was the biggest since November 2009.