The Euro slipped against the Dollar ahead of a widely anticipated interest rate cut by the European Central Bank (ECB) on Thursday, while the greenback rebounded from seven-month lows against the Yen after US-Japan trade discussions steered clear of currency issues.

US President Donald Trump’s unpredictable trade policies have created uncertainty around global growth and inflation, complicating central banks' decisions as the threat of additional tariffs looms.

The European Central Bank is almost certain to implement its seventh interest rate cut within a year on Thursday, aiming to support an already weakened economy facing further strain from US tariffs.

The Euro slipped 0.3% to $1.13685, after briefly reaching $1.14 earlier in the session, just shy of its three-year high recorded last Friday, Reuters reports.

Attention is also focused on Italian Prime Minister Giorgia Meloni, who is set to visit the White House on Thursday for talks with President Trump. She aims to ease tensions surrounding US tariffs on European goods and present herself as a key intermediary between Washington and Brussels.

“It's a bit of a Super Thursday for the Euro, for the European bond market, but also for the European economy at large ...it could be quite a pivotal moment,” according to Kenneth Broux, head of corporate research FX and rates at Societe Generale.

“We'll see if Meloni can extract maybe some concessions that lead us to a better kind of bilateral trade position ... if the trade position can somewhat be improved, that means that the ECB can be a little bit more relaxed.”

Furthermore, Trump hailed “big progress” in tariff negotiations with Japan on Wednesday. The Dollar climbed 0.58% to 142.64 Yen, rebounding from a seven-month low of 141.62 Yen reached earlier in Asian trading.

The recovery came after Japan’s Economy Minister Ryosei Akazawa confirmed that foreign exchange issues were not addressed during the trade discussions in Washington.

The Yen had strengthened ahead of the trade talks on expectations that Japan and the US might agree to measures supporting a stronger Yen. However, with long Yen positions at their highest levels since records began in 1986, those gains could be reversed if no agreement is reached.

Moreover, the Dollar made a modest rebound against major currencies on Thursday ahead of the long Easter weekend, but remained set to finish the week lower, marking its fourth consecutive weekly decline. The Dollar index edged up to 99.56.