The Euro weakens against the Dollar amid geopolitical risks and anticipation of key US CPI figures due later this week.
The EUR/USD pair fell to near 1.1775 in early Asian trading on Tuesday, extending losses below the 1.1800 mark. The decline comes as investors adopt a cautious stance ahead of the US April inflation report, which could influence Federal Reserve policy expectations.
Prior to the drop, the pair had hovered around 1.1800, with traders weighing geopolitical tensions, including US-Iran ceasefire risks, alongside economic data. Comparable periods saw similar volatility ahead of major inflation releases, which often dictate short-term currency movements.
Market focus remains on the upcoming US Consumer Price Index (CPI) data, which may provide further clarity on the Fed’s rate trajectory. The Euro’s softening reflects broader risk aversion in currency markets.