The EUR/USD pair traded flat near 1.1400 during the early Asian session on Thursday (4/17). Markets remained cautious as traders wait to see if the US President Donald Trump administration reaches a new trade deal with its partners. The European Central Bank (ECB) interest rate decision will be the focus later on Thursday.

Federal Reserve (Fed) Chairman Jerome Powell said on Wednesday that trade tensions risk undermining the Fed's employment and inflation goals. Powell added that US economic growth appears to be slowing, with consumer spending growing modestly, a rush of imports to avoid tariffs that are likely to weigh on Gross Domestic Product (GDP) estimates, and sentiment deteriorating. Concerns over an economic slowdown in the US may drag the US Dollar (USD) lower and provide some fresh air for the major currency pair.

Across the pond, the ECB is widely expected to cut its key interest rate by 25 basis points (bps) on Thursday, marking its sixth straight rate cut amid global tariff tensions and economic uncertainty. "We expect the ECB to cut its policy rate by 25bp, fully priced, with dovish communication on the outlook, opening the door to below-neutral rates," said Bank of America economist Ruben Segura Cayuela.

Traders will take more cues from the ECB Press Conference. Any dovish remarks from policymakers could weigh on the common currency in the near term. However, analysts believe ECB President Christine Lagarde is unlikely to give any hints on future rate cuts amid the uncertainty, and the ECB may decide on its next move as data comes in. (Newsmaker23)

Source: FXstreet