EUR/USD tumbles to near 1.1350 on renewed US Dollar demand

• EUR/USD slumps to near 1.1355 in Wednesday’s early Asian session, down 0.58% on the day. 

• Trump said he had no intention of firing Fed’s Powell, despite being frustrated with the high interest rates.

• Traders ramp up ECB rate cut bets in the June meeting. 

The EUR/USD pair attracts some sellers to around 1.1355 during the early Asian session on Wednesday, pressured by the renewed US Dollar (USD) demand. The Greenback recovers after US President Donald Trump said he had no intention of firing Federal Reserve (Fed) Chair Jerome Powell despite his frustration with the central bank not moving more quickly to slash interest rates.

The White House said on Tuesday that the Trump administration was making progress on negotiations of trade deals aimed at reducing the sweeping tariffs he announced earlier this month. US Press Secretary Karoline Leavitt said that 18 different countries have presented trade offers to the US and that Trump's trade team was meeting with 34 countries this week to discuss potential agreements. The positive developments surrounding US trade talks with trading partners lift the USD and act as a headwind for the major pair. 

Additionally, the hawkish comments from the Fed officials contribute to the Greenback’s upside. Fed Board Governor Adriana Kugler said late Tuesday that with US import tariffs significantly larger than expected and likely to put upward pressure on prices, the US central bank ought to keep short-term borrowing costs steady until inflation risks recede.

Across the pond, the rising expectation that the European Central Bank (ECB) could cut interest rates again in the June policy meeting weighs on the shared currency. Traders are now pricing in nearly a 75% odds of a June rate cut, up from roughly 60% before the ECB's decision, according to LSEG data.

Investors will keep an eye on the preliminary reading of the HCOB Purchasing Managers Index (PMI) from the Eurozone and Germany for April, which is due later on Wednesday. On the US docket, the flash S&P Global Manufacturing and Services PMIs for April will be published.