EUR rose against USD and JPY in the European session on Wednesday as more European countries are considering easing of COVID-19 restrictions as the number of new coronavirus cases decreases. At the same time, Europe's single currency eased against GBP, AUD, NZD and CAD, which benefited from improved risk sentiment.

Italy's Prime Minister Giuseppe Conte reportedly convened a taskforce comprised of leading economists and health experts to decide on which coronavirus measures can safely be lifted and when. "I would like to be able to say, let's open everything. Right away," he wrote on Facebook."But such a decision would be irresponsible." He pledged to spell out the details of the next stage of Italy's fight against pandemic as more data come.

Meanwhile, Spain's Prime Minister Pedro Sanchez stated on Wednesday his government plans to begin winding down the coronavirus lockdown in the second half of May. According to Sanchez, restrictions will be eased slowly and gradually to ensure safety.

Elsewhere, France's government announced plans to start unwinding coronavirus measures from May 11.

Market participants are also awaiting Thursday's virtual meeting of the European leaders, at which they are to discuss the funding of the economic recovery in the EU. Italian PM Conte stated on Tuesday that he would accept "no compromises" at Thursday's conference. He told an Italian parliament session that he would not sign up to a "bargain deal". "The EU and the eurozone cannot afford to repeat the same mistakes they made in the 2008 financial crisis, when it not possible to offer a joint response," he said. The media also report that Italy is expected to request EUR55 billion in stimulus from the European Parliament.