EUR faces pressure on ECB rate cut expectations, mixed global sentiment

EUR/USD declined 0.2% to 1.0825 as growing expectations for European Central Bank rate cuts weigh on the euro. Mixed sentiment across global markets reflects ongoing trade tensions and diverging monetary policy outlooks. Asian and European equity markets showed scattered performance, with the Nikkei down 0.3% while the DAX gained 0.2%. The ECB is increasingly expected to cut rates at its upcoming meeting, with markets pricing in a 75% probability of a 25 basis point reduction. This contrasts with the Federal Reserve's more hawkish stance, supporting dollar strength. EUR/USD faces immediate resistance at 1.0850, with support at 1.0800. Cross pairs like EUR/GBP fell 0.15% to 0.8540 as the pound outperformed. Traders should monitor Thursday's ECB meeting minutes for further policy clues that could accelerate euro weakness.