The EUR/USD holds to earlier gains of 0.25% on Wednesday after US President Donald Trump threatened to remove the Federal Reserve (Fed) Chair Jerome Powell. This, along with a softer-than-expected inflation report on the producer side, capped the Euro's advance versus the US Dollar. At the time of writing, the pair trades at 1.1633 after bouncing off three-week lows of 1.1562.

During the North American session, headlines at first suggested that Trump would sack Powell imminently. However, he later denied those rumors, though he continued to batter him, saying that Powell has been too late to cut interest rates. On the data front, the US Producer Price Index (PPI) edged below estimates and May's reading in headline and underlying prints.

Atlanta Fed President Raphael Bostic said that he is not focused on news reports about the Fed but rather on matters that truly matter. The Fed unveiled its May Beige Book, which painted a solid economic outlook for the economy, as activity increased slightly from late May through early July.

The Eurozone schedule remained empty on Wednesday, with traders eyeing the release of June's Harmonized Index of Consumer Prices (HICP) ahead of the July 24 European Central Bank (ECB) monetary policy meeting. Recent remarks from several members have shown that the Governing Council is split between cutting or holding rates unchanged.

Source: Fxstreet