EUR/USD gains ground above 1.1250 ahead of US Retail Sales release

• EUR/USD remains firm near 1.1285 in Wednesday's early Asian session. 
• Fed's Waller said if the impact of tariffs threatens a deep economic slowdown, then he would back a sooner rate cut. 
• The ECB is expected to cut interest rates by 25 bps on Thursday.

The EUR/USD pair trades in positive territory around 1.1285 during the early Asian session on Wednesday. The US Dollar (USD) currently trades near a three-year low against the Euro (EUR) as trade tensions remain well in place. Traders brace for the US Retail Sales report and the speech of Federal Reserve (Fed) Chair Jerome Powell on Wednesday.

Fed Governor Christopher Waller said on Monday that the Trump administration's tariff policies were a major shock to the US economy that could lead the central bank to cut rates to head off recession even if inflation remained high. Meanwhile, Atlanta Fed Bank President Raphael Bostic suggested that the Fed bank should stay on hold until there is more clarity.

According to the CME FedWatch tool, the markets are now pricing in nearly 85 basis points (bps) worth of monetary policy easing by the end of the year, with most expecting the Fed to hold rates next month.

Across the pond, the European Central Bank (ECB) is widely anticipated to cut interest rates by 25 bps on Thursday amid growing recession concerns tied to US tariffs. Hadrien Camatte, senior economist at Natixis, said the ECB may cut all three key interest rates at its April meeting on Thursday. The ECB lowered interest rates for the second consecutive time in March, bringing the deposit rate down to 2.5%. A further reduction would see the rate reduced to 2.25%.