The EUR/USD rallied more than 0.50% on Wednesday, boosted by broad US Dollar weakness across the board as traders began to price in rate cuts by the Federal Reserve. In addition, fears of the Fed's independence from the White House increased, as US President Trump said that he would nominate a replacement for the vacated seat by Fed Governor Adriana Kugler, who steps down on August 8. The pair trades at 1.1657 after bouncing off lows of 1.1564.

The economic docket in the US was empty on Wednesday, though a slew of Fed officials crossed the wires. Boston Fed President Susan Collins revealed that there's a lot of uncertainty in the economy, suggesting a wait-and-see approach. Her colleague, Fed Governor Lisa Cook, said that the July jobs data was concerning and that big revisions usually can happen at economic turning points.

Collins and Cook's remarks maintain the "status quo" of keeping interest rates unchanged until data indicates an ongoing economic slowdown. Meanwhile, Minneapolis Fed President Neel Kashkari said on Tuesday that he still foresees two rate cuts towards the end of the year.

In the meantime, the US President Donald Trump expressed that he would nominate Kugler's replacement towards the end of the week.

Across the pond, the Eurozone (EZ) economic docket revealed that Germany's Factory Orders softened in June, while Retail Sales for the bloc improved in the twelve months to June data.

Ahead of the week, traders would eye the US Initial Jobless Claims data. Conversely, Germany's Industrial Production print and the Trade Balance would dictate the current status of the European Union (EU)'s largest economy.

Source; Fxstreet