The euro recovered from the steep overnight sell-off, which dragged it to a fresh 4-year low versus the greenback beneath the 1.22-level to 1.2145 while crude oil edged back up over the $70-per barrel level. The US equity indexes traded lower, albeit declining less than the European and Asian bourses in the Wednesday session. The Dow Jones traded lower by 0.6% while the Nasdaq slid by 0.8%. Spot gold traded sharply lower, breaking through the $1,200-level and losing around 5% since touching a fresh all-time high last Friday at $1,249.40.

Economic reports released today included the April consumer price index, which increased by less than expected and Q1 mortgage delinquencies. The headline April CPI declined by 0.1% versus a 0.1% increase in the previous month and up by 2.2%, down from 2.3% a year earlier. First quarter mortgage delinquencies climbed to its highest level since the data was tracked in 1979, higher by 10.06% from 9.47% in Q4.

The minutes from the Fed's April meeting revealed that the FOMC was in no rush to sell-off assets, deeming it best to hold onto the assets for some time and for them to continue keeping the assets on its balance sheet until the economic recovery is further along. The sole dissenter, Kansas City Fed Chief Hoenig believes the Fed funds rate should be lifted to 1% over the coming months.

Traders will look ahead to data scheduled for Thursday consisting of weekly jobless claims, the May Philadelphia Fed manufacturing survey, and the April leading economic indicators. Weekly jobless claims are forecast to ease to 440k from 444k in the previous week, while the Philadelphia Fed manufacturing survey is forecast to edge up to 21.3, improving from 20.2 from March.