EUR/USD rises about 1,1350 before the Inflation data of the EUROZONA HICP

• The EUR/USD is backed by an improvement in the feeling of global risk.
• The euro could face winds against the markets anticipate a rate cut of 25 basic points by the ECB on Thursday.
• The CME Fedwatch tool indicates that the markets are valuing around 85 basic points of Fed features for the end of the year.

The EUR/USD is negotiating around 1,1340 during Wednesday’s Asian hours, bouncing after two consecutive loss sessions. The torque is receiving support from a more positive global feeling, driven by the decision of the US president, Donald Trump, to exempt key technological products from his new “reciprocal” tariffs announced.

However, the additional rise potential for the euro (EUR) can be limited, since the markets highly expect the European Central Bank (ECB) to cut interest rates at 25 basic points on Thursday. This movement occurs in the midst of growing recession fears linked to US commercial policy. The ECB has already reduced rates twice this year, with the ease rate currently currently in 2.5%. A cut this week would lead to 2.25%.

Investors will be observing closely the press conference of the BCE president, Christine Lagarde, in search of signals on the direction of the Central Bank’s policy for the rest of the year, as well as the possible economic impact of the US tariff measures in the Eurozone.

Meanwhile, the CME Fedwatch tool shows that the markets are valuing approximately 85 basic points of Fed features for the end of the year, with expectations that the Fed maintain the stable rates at the next meeting. Later in the day, attention will focus on US retail sales data for March, which can provide more information on how tariff uncertainties are affecting consumer spending.