The euro was virtually unchanged against the dollar at $1.132 on Wednesday. It also was steady at 90.56 pence.
Investors continue to assess chances of a no-deal scenario in Brexit case as uncertainty about whether Theresa May can survive as PM rises.
Sterling traded at $1.2505, having lost 1.9 percent during the previous two sessions. It wobbled near 20-month trough amid reports Conservative MPs could trigger a no-confidence vote in Theresa May as party leader.
The U.S consumer price report due later on Wednesday is also in focus. A widely expected slowdown in headline inflation may reinforce speculation of fewer rate increases from the U.S. Federal Reserve.