The pound erased its early losses against its major counterparts in the Asian session on Wednesday, following a media report that the Bank of England is considering an extension to emergency bond-buying program when it ends on Friday.

The Financial Times reported that BoE Governor Andrew Bailey has signaled the likelihood of extending bond buying program to prevent a volatility in the market.

BoE officials reportedly told lenders that it would continue bond facility past the October 14 deadline, if market conditions warranted it.

The report came after a warning from the BoE chief that it would stop buying bonds that could put some pension schemes in trouble.

"You've got three days left now and you've got to sort it out," Andrew Bailey told pension funds on Tuesday.

The pound rose to 1.1057 against the greenback and 0.8796 against the euro, up from its early near 2-week lows of 1.0923 and 0.8867, respectively. The pound may challenge resistance around 1.26 against the greenback and 0.86 against the euro.

The pound advanced to 161.50 against the yen and 1.1010 against the franc, reversing from an early low of 159.74 and near a 2-week low of 1.0908, respectively. Next key resistance for the pound is found around 165.00 against the yen and 1.21 against the franc.

Looking ahead, Eurozone industrial production for August is due in the European session.

U.S. producer prices for September will be released in the New York session.

The U.S. Federal Reserve will release the minutes from the September 20-21 policy meeting at 2:00 pm ET.

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