The EUR/USD pair attracted some buyers near 1.0450 during the early Asian session on Friday (1/24), supported by a weaker US Dollar (USD). The preliminary readings of the HCOB Purchasing Managers' Index (PMI) for January from the Eurozone and Germany are due later on Friday. On the US data front, the flash S&P PMI for January will be in the spotlight.

US President Donald Trump's remarks at the World Economic Forum in Davos dragged the USD lower against a basket of major currencies. Trump said on Thursday night that he wants to see interest rates cut soon, and likewise, interest rates should be cut around the world.

"It seems like the market is more concerned about rate cuts and any kind of larger indicators that there are going to be more rate cuts," said David Eng, Investment Advisor at Sonora Wealth Group in Vancouver.

Across the pond, recent comments from European Central Bank (ECB) policymakers suggest that rate cuts are on the cards. Croatia's central bank chief, Boris Vujcic, said earlier this week that market expectations for an ECB rate cut were reasonable and risks to the inflation outlook were broadly balanced.

Meanwhile, ECB President Christine Lagarde stressed on Wednesday that the central bank was "not particularly concerned" about inflation risks from abroad and would continue to gradually lower interest rates. Markets have priced in a nearly 96% chance that the ECB will cut rates at its next meeting. (AL)

Source: FXstreet