The euro falls against the dollar as geopolitical risks and upcoming US CPI data weigh on sentiment ahead of the ECB rate decision.
The EUR/USD pair declined to around 1.1530 in early Asian trading on Tuesday, extending losses below 1.1550. The move reflects heightened uncertainty in the Middle East, which has dampened risk appetite among traders.
Market participants are also awaiting Wednesday’s US May Consumer Price Index (CPI) inflation data, which could influence the Federal Reserve’s policy outlook. The European Central Bank’s rate decision later this week adds to the cautious sentiment, with investors assessing potential shifts in monetary policy.
The currency pair’s decline follows a period of consolidation, as traders balance geopolitical risks against economic data releases expected to drive near-term volatility.