EUR/USD Dips to Two-Week Low Before Partial Recovery Ahead of US CPI Release

The EUR/USD currency pair fell to a two-week low of 1.1377 on Tuesday before recovering slightly to close at 1.1381, as the US Dollar strengthened in anticipation of the upcoming US Consumer Price Index (CPI) data, according to FX Street citing United Overseas Bank (UOB).

During early European trading, the pair edged up 0.12% to around 1.1395 as the US Dollar corrected ahead of the US CPI release scheduled for 12:30 GMT, FX Street reported. Market participants are closely watching this key inflation indicator for clues on the Federal Reserve's next monetary policy moves.

For Japanese investors, the EUR/USD movements underscore the broader volatility in FX markets driven by US economic data, which can influence risk sentiment and impact carry trades involving the Japanese Yen and Euro.