EUR/USD edges above 1.1750 due to ECB-Fed policy divergence

EUR/USD has recovered from recent losses, trading around 1.1760 during the Asian hours on Friday. This rise is influenced by the divergence between the European Central Bank (ECB) and the Federal Reserve (Fed) policies. With the ECB maintaining a dovish stance while interest rates in the U.S. are expected to rise, this has prompted movement in the EUR/USD pair. Traders are especially focused on the German Manufacturing Purchasing Managers' Index (PMI) data scheduled for later today. This indicator is crucial for signaling the health of economic activity, and a reading above expectations may support further gains for the euro. Conversely, a disappointing outcome could result in a weakening of the euro. Overall, while EUR/USD might maintain its current levels or move higher, traders should remain cautious ahead of the important economic reports.