EUR/USD attracted some selling around 1.1355 in early Asian trading on Wednesday, pressured by a pick-up in demand for the U.S. dollar (USD). The dollar resumed gains following news that U.S. President Donald Trump said he had no intention of firing Federal Reserve Chairman Jerome Powell, despite his frustration with the central bank's failure to cut interest rates more quickly.

The White House said on Tuesday that the Trump administration had made progress in negotiations for a trade deal aimed at reducing the broad tariffs he announced earlier this month. U.S. press secretary Carolyn Leavitt said 18 different countries have made trade offers to the United States and Trump's trade team is meeting with 34 countries this week to discuss potential deals. Positive trade talks progress with trading partners boosted the U.S. dollar and posed a headwind for the major currency pair.

In addition, hawkish remarks from Federal Reserve officials also contributed to the rise of the US dollar. The U.S. central bank should keep short-term borrowing costs stable until inflation risks abate as significantly higher-than-expected U.S. import tariffs could put upward pressure on prices, Federal Reserve board member Adrienne Kugler said late Tuesday.

Across the Atlantic, rising expectations that the European Central Bank (ECB) may cut interest rates again at its June policy meeting put pressure on the euro. Traders are now pricing in a near 75% chance of a rate cut in June, compared with around 60% before the ECB’s decision, according to LSEG data.

Investors will be focusing on preliminary readings of the euro zone and German HCOB Purchasing Managers' Index (PMI) for April, due later on Wednesday. On the US schedule, the S&P global manufacturing and services flash PMIs for April will be released.