EUR/USD is trading at 1.0461 amid the markets' reaction to the European Central Bank's latest decisions.

The ECB reiterated confidence in reducing inflation to the 2% target, but maintains a cautious approach to further policy changes. Despite this, investors continue to expect significant rate cuts over the next two years, including a possible large 50 basis point cut. The euro temporarily weakened to 1.0468 but then recovered to 1.05. The rate cut outlook remains the key driver of the currency pair's movement.