EUR/USD Stalls at Two-Month High Amid Crude Oil Price Surge
The EUR/USD pair hovered around 1.1575-1.1580 during the Asian session on Tuesday, after stalling a modest pullback from its two-month high. However, a slight uptick in the US Dollar Index (DXY) warranted caution before positioning for further gains.
Rising crude oil prices kept inflation jitters firmly on the table, which could force the Federal Reserve to adopt a more hawkish stance. This, combined with persistent geopolitical uncertainties, revived demand for the safe-haven Greenback and might act as a headwind for the EUR/USD pair.
The focus will remain glued to the release of FOMC Minutes on Wednesday, which will be looked upon for cues about the Fed's future policy path. This will play a key role in influencing near-term USD price dynamics and provide some impetus to the EUR/USD pair.