EUR/USD Steady Ahead of US CPI Data and US-China Trade Developments

EUR/USD Flat as Markets Await US CPI and Updates from US-China Trade Talks

Pair Trades Sideways After Reaching 1.1447 High

The EUR/USD currency pair is trading flat near 1.1423 during Tuesday's North American session, retreating from a session high of 1.1447, as forex markets adopt a cautious stance ahead of key economic events.

US-China Trade Talks Provide Limited Optimism

Investors continue monitoring developments from ongoing US-China trade negotiations in London, which have been labeled “good” by US President Donald Trump but have yet to yield any significant breakthroughs. While initial hopes of easing tensions supported the US Dollar (USD), lack of concrete outcomes has tempered investor enthusiasm.

Key discussion points include rare earth exports, chip technology, and student visas. Any progress or setbacks in these areas could influence market direction in the coming sessions.

ECB Signals Policy Pause Amid Tariff Uncertainty

On the European front, the European Central Bank (ECB) has sent signals suggesting the end of its rate-cutting cycle, citing the need to assess the economic impact of newly imposed tariffs. Traders also await the release of the ECB’s Wage Tracker, which could offer further insight into inflation pressures across the Eurozone.

US CPI Data the Key Short-Term Catalyst

The US Consumer Price Index (CPI) report, scheduled for release on Wednesday, is expected to be the next major market mover. A strong inflation print could reinforce expectations that the Federal Reserve will keep interest rates steady, potentially supporting the USD further.

Outlook: Volatility Likely as Markets Digest Mixed Signals

Until clear direction emerges from either the US inflation front or trade talks, EUR/USD is likely to remain range-bound. Market participants will closely watch for any surprises that could reshape expectations around monetary policy or global trade stability.