EUR/USD traded around 1.1340 during Asian hours on Wednesday (4/16), recovering from two consecutive sessions of declines. The pair found support from a more positive global risk sentiment, supported by US President Donald Trump's decision to exempt major technology products from his newly announced "reciprocal" tariffs.

However, further upside for the Euro (EUR) may be limited as markets widely expect the European Central Bank (ECB) to cut interest rates by 25 basis points on Thursday. The move comes amid growing recession fears linked to US trade policy. The ECB has already cut interest rates twice this year, with the Deposit Facility Rate currently at 2.5%. This week's cut would bring it down to 2.25%.

Investors will be watching ECB President Christine Lagarde's press conference for signals on the central bank's policy direction for the rest of the year, as well as the potential economic impact of US tariff measures on the Eurozone.

Meanwhile, the CME FedWatch tool shows that markets are pricing in about 85 basis points of Fed rate cuts by the end of the year, with expectations that the Fed will hold rates steady at its next meeting. Later in the day, attention will turn to US Retail Sales data for March, which could provide further insight into how tariff uncertainty is affecting consumer spending. (Newsmaker23)

Source: FXstreet