EUR/USD Holds Above 1.1600 as Markets Eye US-Russia Meeting and US Inflation Data

EUR/USD Gains as Traders Await US-Russia Summit and US CPI Data

The EUR/USD currency pair trades around 1.1620 on Tuesday morning in Asia, recovering from two straight sessions of losses. The Euro gains support from improved market sentiment as investors prepare for the high-level US-Russia meeting scheduled for Friday, which could help de-escalate the war in Ukraine.

The upcoming summit, set to be held in Alaska on August 15, will see US President Donald Trump and Russian President Vladimir Putin meet face to face in hopes of finding a diplomatic resolution to the Ukraine conflict. Notably, Ukrainian President Volodymyr Zelenskyy is not expected to attend, though details on the discussion agenda remain limited.

Eurozone Outlook and ECB Policy

On the monetary policy front, the European Central Bank (ECB) concluded its prolonged easing cycle in July after delivering eight consecutive rate cuts since late 2022. These aggressive moves brought interest rates to record lows, aiming to counter persistent economic weakness across the Eurozone. However, a small portion of the market still expects one final rate cut before year-end, especially if incoming data disappoints.

Fed in Focus with Inflation Data Incoming

Looking ahead, markets are also closely watching the July US Consumer Price Index (CPI) report, due later today. A softer-than-expected inflation print could increase speculation about potential rate cuts by the Federal Reserve, which would likely weigh on the US Dollar and further support EUR/USD upside.

Overall, EUR/USD remains supported above the key 1.1600 level, with both geopolitical and macroeconomic developments expected to shape its near-term direction.