The EUR/USD pair trades in positive territory for the third consecutive day around 1.1080 during the early European session on Friday bolstered by the broader US Dollar weakness. Investors await the German Factory Orders and US employment report, which will be published later on Friday.

US President Donald Trump on Wednesday unveiled sweeping global tariffs of at least 10% on goods imported from most US trading partners. The Trump administration plans to impose a 20% tariff on EU goods and higher duties on some of the country's biggest trading partners. The tariffs will take effect on April 9.

Worries about the impact of an escalating global trade war and a slew of weaker-than-expected US data raise the fear of a sharp global economic slowdown. This, in turn, drags the USD lower and acts as a tailwind for EUR/USD.

Across the pond, the markets increased their bets on future European Central Bank (ECB) rate cuts on Thursday as the tariff announcement by Trump increased fears of a trade war that would hurt the Eurozone growth. Money markets have priced in a nearly 80% possibility of a 25 basis points (bps) ECB rate cut in the April meeting, according to the Reuters poll. The rising expectation of ECB rate reduction could weigh on the shared currency in the near term.
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB's primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.

Source: Fxxstreet