Current Euro Rate - The EUR/USD currency pair has rebounded after two consecutive days of decline, approaching the 1.0930 level during Tuesday's Asian session. However, this increase is hindered by risk tensions ahead of the upcoming U.S. Consumer Price Index (CPI) data release.

Market expectations indicate a potential increase in the U.S. CPI for February, although the annual index is expected to remain stable. Positive CPI performance could influence the Federal Reserve's (Fed) interest rate policy, potentially strengthening the U.S. Dollar (USD) and posing challenges for EUR/USD.

The CME FedWatch Tool recorded a slight decrease in the probability of a 25 basis point (bps) rate cut in March and May, at around 3.0% and 21.9%, respectively. The likelihood of a 25 bps rate cut in June dropped to 55.2%.

ECB President Christine Lagarde has taken a cautious stance, emphasizing the need for further evidence before considering any adjustments to interest rates. The ECB is maintaining its existing monetary policy and is committed to controlling inflation. Stricter ECB measures could support the Euro and influence EUR/USD. German CPI data released on Tuesday may be a focal point for investors.

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