EUR/USD trades lower around 1.1800, upside appears amid rising odds of Fed rate cuts

• EUR/USD may appreciate as the US Dollar struggles due to rising expectations the Fed cutting interest rates.

• US ADP Employment Change fell by 33,000 in June, against the downwardly revised 29,000 gain in May.

• ECB policymaker Pierre Wunsch said, “I am not uncomfortable with the market's interest rate expectations.”

EUR/USD remains subdued for the second successive session, trading around 1.1800 during the Asian hours on Thursday. The pair may regain its ground as the US Dollar (USD) loses ground amid rising expectations that the Federal Reserve (Fed) will cut interest rates, driven by the downbeat ADP national employment report.

US ADP Employment Change fell for the first time in more than two years in June. The private-sector payrolls decreased by 33,000 in June after a downwardly revised 29,000 gain in May. This figure came in below the market consensus of 95,000.

Traders await highly anticipated labor market data, including US Nonfarm Payrolls (NFP) and Average Hourly Earnings, due later in the day. Moreover, ISM Services PMI and S&P Global US PMI will also be eyed on Thursday.

Latest remarks from several European Central Bank (ECB) officials on the ECB forum highlighted increasing concern over the Euro's (EUR) strength and its potential dampening effect on inflation.

ECB policymaker Pierre Wunsch said on Wednesday that “I am not uncomfortable with the market's interest rate expectations.” “There is an argument for providing a mildly supportive policy stance,” Wunsch added. Meanwhile, ECB member Olli Rehn said, “ECB should be mindful of the risk that inflation stays persistently below 2% target.” Rehn noted that the “joint European borrowing to finance defence could bolster the Euro's role by creating a new safe asset.”