U.S. dollar trims declines against euro after data .

The dollar pared losses against the euro after data showed the pace of business activity in the U.S. Midwest rose in July.

The euro last traded at $1.2280, up 0.2 percent on the day, compared with $1.2297 before the data.

"What it does do, however, is guarantee the Fed won't take any action tomorrow because we have not seen enough pullback in the U.S. economy to justify any action," said Kathy Lien, managing director of BK Asset Management in New York.