The Euro climbs against the Dollar as US inflation figures fall short of expectations, pressuring the Greenback.
EUR/USD advanced to 1.1420 on Tuesday, extending gains as the US Dollar retreated following softer-than-expected US inflation data. The move reflects broad selling of the Greenback rather than strength in Eurozone fundamentals.
Prior to the release, the Dollar had been supported by expectations of sustained Federal Reserve tightening. Consensus estimates had anticipated firmer inflation prints, but the actual figures fell below projections, weakening the USD.
Markets are now reassessing the likelihood of further Fed rate hikes, with traders pricing in a potential pause in monetary tightening.