The EUR/USD retreats a minimal 0.10% on Wednesday as developments about the Federal Reserve's independence dissipated, while the French Prime Minister Bayrou called for a confidence vote. At the time of writing, the pair trades at 1.1631, after hitting a daily high of 1.1647.

The narrative in the financial market remains unchanged, with the White House exerting pressure on the Federal Reserve following Trump's firing of Fed Governor Lisa Cook. Good data in the United States (US) on Tuesday, reflected on an uptick in Durable Goods Orders and the Conference Board (CB) Consumer Confidence, capped the Dollar's fall.

Earlier, the New York Fed President adopted a dovish stance, given his views on the neutral rate, in which the Fed could reduce interest rates and still be restrictive.

Across the pond, a deterioration in consumer confidence in Germany and a headline in The Guardian read, "France on the brink: how a budget deficit became a political crisis," revealing that the government would likely be defeated in a confidence vote, which would exert downward pressure on the Euro.

"France is stuck in economic limbo, without a budget and soon, possibly, without a government," the article said as the election is programed for September 8. France's finance minister Eric Lombard revealed that asking the global lender of last resort, the International Monetary Fund, to intervene "is a risk that is in front of us."

Ahead this week, the US economic docket will feature GDP figures, Initial Jobless Claims and Fed's Governor Christopher Waller remarks. In the European Union (EU), market participants are anticipating the release of the European Central Bank's (ECB) latest meeting minutes, along with data on the EU's Business Climate and Consumer Confidence.

Source: Fxstreet