EUR/USD holds positive ground above 1.0800, eyes on Eurozone inflation data, ECB's Lagarde speech

• EUR/USD edges higher to near 1.0815 in Tuesday's early European session. 
• Investors will closely monitor the new round of reciprocal levies that the White House is due to announce on Wednesday. 
• The concerns over the US economic growth and uncertain trade policy weigh on the US Dollar. 

The EUR/USD pair gains momentum to around 1.0815 during the early European session on Tuesday. The Greenback weakens as the markets await clarity on reciprocal tariffs from US President Donald Trump on Wednesday. 

Trump said late Monday that his reciprocal tariffs plan will target all other countries when it is unveiled Wednesday, adding more uncertainty to the much-anticipated trade policy just days before its implementation.  Trump denied that the additional tariffs will target just the top 10 or 15 trade partners that have their own import duties on US goods. 

Furthermore, the concerns over the economic slowdown in the US could drag the US Dollar (USD) lower and create a tailwind for the major pair in the near term. Nonetheless, the softening stance on tariffs from the Trump administration could soothe investors worried a global trade war will slow down the US economy, which could help limit the USD's losses. 

Richmond Fed President Tom Barkin said late Monday that the US central bank would need to have confidence that inflation will move down before cutting the interest rates again. New York Fed President John Williams noted that the policy is in a good position to navigate through uncertainties, despite potential risks of higher inflation. Swaps traders continued to price in about two quarter-point rate cuts this year, with the first seen coming in July, according to the CME FedWatch tool.

Traders will keep an eye on the preliminary reading of Harmonized Index of Consumer Prices (HICP) data for March from the Eurozone. Also, the European Central Bank (ECB) President Christine Lagarde is scheduled to speak later on Tuesday. On the US docket, the ISM Manufacturing PMI report for March will be released.