Currency Markets Brace for 'Super Thursday' Amid Tariff Tensions

The euro eased against the dollar as investors anticipated an interest rate cut by the ECB. President Trump's trade policies have increased market uncertainty. The ECB is poised for its seventh rate cut this year amid U.S. tariff pressures. The dollar attempted a rebound against major peers.

The euro slipped against the dollar while investors braced for another interest rate cut by the European Central Bank on Thursday. Concurrently, the U.S. dollar rose from seven-month lows against the yen, following trade talks between the U.S. and Japan that avoided foreign exchange discussions.

President Donald Trump's unpredictable trade policies are casting a shadow over global economic growth prospects, complicating central banks' decisions on future actions as more tariffs loom. The ECB is expected to implement its seventh rate cut this year as it tackles economic strains heightened by potential U.S. tariffs.

Meanwhile, Italian Prime Minister Giorgia Meloni plans to meet Trump at the White House in an attempt to alleviate tensions over tariffs imposed on European goods. This development takes place as the dollar shows signs of recovery amidst recent market volatility, attempting a bounce back against major international currencies.

(With inputs from agencies.)