The U.S. dollar edged higher in early European trade Wednesday, picking up ahead of a key speech from Fed Chair Jerome Powell later in the session.

At 03:20 ET (07:20 GMT), the US Dollar Index, which tracks the greenback against a basket of six other currencies, climbed 0.2% to 105.587, rebounding from the near two-month low of 104.84 seen earlier in the week.

The dollar index is currently on course for a weekly gain, reversing last week's hefty decline, after a slew of Federal Reserve speakers left the door open to further rate hikes to combat inflation.

EUR/USD fell 0.2% to 1.0677, ahead of the release of the eurozone retail sales data for September, which is expected to show an annual drop of 3.1%, as consumers continue to struggle.

GBP/USD dropped 0.2% to 1.2275, retreating further from the seven-week high of 1.2428 seen at the start of the week.

AUD/USD rose 0.1% to 0.6443, with the Aussie dollar making a slight comeback after having dropped 0.8% in the previous session, its largest daily decline in about a month, after the Reserve Bank of Australia watered down its tightening bias to make it more conditional on incoming data.

USD/JPY rose 0.2% to 150.69, remaining well above the key 150 level as traders warily awaited potential intervention by the Japanese government to boost the yen.

Source : Investing.com