USD traded flat and mixed against its major rivals in the European session on Wednesday after recent declines, caused by news about progress on the coronavirus vaccine front and Biden's transition to the White House, as well as hopes for more fiscal stimulus, which increased after media reports that former Fed chair Janet Yellen would be nominated for U.S. Treasury secretary. Favorable news bolstered investors' risk appetite and maintained 2021 recovery optimism.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged down 0.06% to 92.17.

Market participants are awaiting the release of a raft of U.S. economic data, including weekly jobless claims, revised Q3 GDP data and consumer income/spending statistics for October. Later, the FOMC will release the minutes from its November meeting.