EUR/USD recovers sharply to near 1.0800 ahead of Fed policy while Trump's victory keeps downside bias intact German three-party coalition collapsed, paving the way for snap elections in early 2025. The Fed is expected to cut interest rates by 25 bps to 4.50%-4.75%. EUR/USD rebounds sharply to near 1.0800 in North American trading hours on Thursday. The major currency pair bounces back after posting a more than four-month low below 1.0700 on Wednesday. The recovery comes as the US Dollar (USD) corrects ahead of the Federal Reserve’s (Fed) interest rate decision, which will be published at 19:00 GMT. On Wednesday, the USD Index surged more than 1.6% – the highest single-day gain in almost four years – as United States (US) citizens chose Republican Donald Trump in the presidential elections over Democratic candidate Kamala Harris. The reasoning behind the US Dollar’s rally was Trump’s promise to raise import tariffs and lower corporate taxes. On Thursday, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, drops to near 104.50 after Wednesday’s rally.