Global markets mixed ahead of ECB rate cut; tariff uncertainty weighs

Major forex pairs showed mixed performance as traders positioned ahead of the European Central Bank's anticipated 25 basis point rate cut, while ongoing tariff uncertainty clouded the outlook. The euro remained relatively stable near 1.0850 against the dollar, with markets fully pricing in the ECB's dovish move. Risk sentiment stayed cautious as investors assessed the global trade environment's impact on currency flows. The uncertain tariff landscape particularly affected commodity currencies and emerging market pairs, creating choppy trading conditions. Asian sessions saw limited movement in USD/JPY around 151.50, while GBP/USD consolidated near 1.2650. The ECB decision could trigger euro volatility, with EUR/USD likely to test 1.0800 support if the central bank signals further easing ahead. Traders should prepare for increased volatility post-ECB, particularly in euro crosses.