The currency pair remains flat as traders weigh U.S. interest rate hike bets against weaker-than-expected Eurozone CPI data.
The EUR/USD pair traded steady at around 1.1400 on Tuesday, failing to extend gains despite softer Eurozone inflation figures. Market focus shifted to expectations of further Federal Reserve rate hikes, offsetting the impact of cooler consumer price data in the euro area.
Earlier, Eurozone CPI readings came in below forecasts, suggesting easing price pressures. However, the Fed’s hawkish stance, reinforced by recent U.S. economic resilience, kept the dollar supported. The pair showed minimal volatility as traders awaited further cues from upcoming central bank communications.
No immediate market reaction was observed, with the pair consolidating near its opening levels for the session.