USD fell against most other major currencies in the European session on Wednesday as hopes for a quick global economic recovery from the coronavirus downturn and expectations of more stimulus from central banks and governments bolstered risk sentiment. The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.15% to 97.53.

The Markit/Caixin Services PMI for China climbed to 55.0 in May from 44.4 in April, signaling the first increase in services activity since January. The pace of expansion was the steepest since October 2010. The surveyed companies mentioned that an easing of restrictions related to the COVID-19 outbreak had driven the renewed expansion of activity. 

Meanwhile, IHS Markit Eurozone Composite PMI rose markedly from April’s record low of 12.0 to record a three-month high of 30.5. Despite the improvement, however, the index remained well below the 50-no-change mark and indicative of another considerable reduction in service sector activity. 

The U.S. currency remained also weighed down by ongoing violent mass protests across the United States over police brutality and their implications for the U.S. economy.