EUR/USD extends its losing streak for the third successive session, trading around 1.1240 during the Asian hours on Thursday. The preliminary US Q1 Gross Domestic Product (GDP) Annualized, Personal Consumption Expenditures Prices QoQ, and Initial Jobless Claims, scheduled to be released later in the day.
The EUR/USD pair depreciates as the US Dollar (USD) gains ground following a decision by a US federal court on Wednesday to block US President Donald Trump from imposing "Liberation Day" tariffs from taking effect. A three-judge panel at the Court of International Trade in Manhattan ruled that Trump lacked the authority and declared the move unconstitutional and beyond presidential authority.
On Wednesday, the Federal Open Market Committee's (FOMC) Minutes for the latest policy indicated that Federal Reserve (Fed) officials broadly agreed that heightened economic uncertainty justified their patient approach to interest-rate adjustments. Fed officials emphasized the need to keep interest rates unchanged for some time, as recent policy shifts cloud the US economic outlook.
However, the downside of the risk-sensitive Euro (EUR) could be restrained due to easing trade tension between the United States and the European Union (EU). Last week, President Trump extended the tariff deadline on imports from the EU from June 1 to July 9.
The Brussels agreed on Monday to accelerate trade talks with the United States to avoid a transatlantic trade war. On Tuesday, Trump expressed his satisfaction in a post on Truth Social, noting that the EU is speeding up the process toward reaching a trade deal with the US. "I have just been informed that the EU has called to quickly establish meeting dates. This is a positive event, and I hope that they will", Trump wrote.
On Wednesday, European Central Bank (ECB) Governing Council member and head of the Dutch central bank De Nederlandsche Bank (DNB), Klaas Knot, said that the current European inflation outlook is gloomy, challenging the central bank to engage in direct moves. Knot added that the medium-term inflation outlook is more ambiguous, which may cause considerable issues.
Source: Fxstreet
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