EUR/USD Approaches 1.0930 Mark as Attention Shifts to US Inflation Data

EUR/USD saw a slight rise, nearing the 1.0930 level on Tuesday, bouncing back from previous losses. Investors are watching US inflation data, which could impact the pair’s movement.

There’s a 55.2% chance of a 0.25% rate cut by June, according to the CME FedWatch Tool. Market expectations for German inflation in February remain steady.

The pair faced resistance amidst cautious trading before the US Consumer Price Index (CPI) release. If the CPI shows a month-over-month increase, it might lessen the likelihood of a near-term Fed rate cut, strengthening the USD and posing challenges for EUR/USD.

ECB President Christine Lagarde is taking a careful stance, emphasizing the need for more evidence before considering rate adjustments. The ECB intends to maintain its current monetary policy to return inflation to target levels.

Investors are also watching Germany’s CPI data release on Tuesday. The ECB’s optimistic outlook could support the Euro, potentially benefiting EUR/USD.

EUR/USD