• EUR/USD saw a hard rally above 1.0880 on ECB rate cut hopes.
• US ADP labor miss drove the pair back into Wednesday’s opening range.
• US Fed head Jerome Powell due at 19:30 GMT after Fed rate call.

EUR/USD saw a hard rally in early Wednesday trading, rising three-quarters of a percent bottom-to-top after misses in German Consumer Price Index (CPI) inflation figures missed the mark, with markets pivoting back into a cautious stance ahead of the Federal Reserve’s (Fed) rate call and following press conference. EUR/USD fell back into the day’s opening bids near 1.0850 as the pair remains stuck in the middle of near-term consolidation.

German Retail Sales backslid early Wednesday, followed by German CPI inflation easing faster than expected, helping to bolster investor sentiment in the midweek that the European Central Bank (ECB) would see the way forward towards a faster pace of rate cuts.