The EUR/USD pair pared daily losses and traded around 1.1230 during the Asian session on Friday (09/05). The pair depreciated as the US dollar (USD) found support from upbeat US economic data and signs of easing trade tensions.

US President Donald Trump announced a "major" trade deal with the United Kingdom (UK), although the headline tariffs remain at 10%, which has dampened market optimism. Attention now turns to initial US-China trade talks set for later this week in Switzerland, but both sides have downplayed expectations of a breakthrough.

Trump continues to take a hardline stance on China, especially after appointing a new envoy to Beijing. Although discussions around potential tariff exemptions are ongoing, the US administration remains cautious, with Trump stating they are "not looking for that many exemptions." On the data front, US initial jobless claims fell to 228,000 for the week ended May 3, slightly below expectations and down from the previous week's unrevised reading of 241,000. The seasonally adjusted insured unemployment rate held steady at 1.2%. However, the four-week moving average edged up to 226,000, and continuing jobless claims fell by 29,000 to 1.879 million for the week ended April 26.

Meanwhile, the euro (EUR) remains under pressure as markets increasingly price in further interest rate cuts by the European Central Bank (ECB), possibly as soon as its June meeting. ECB officials have voiced concerns over the eurozone's economic outlook, although they remain confident that inflation will return sustainably to its 2% target by year-end. (Newsmaker23)

Source: FXstreet