Euro Gains Exposed by Soaring Oil Prices

The euro traded against the US dollar at $1.15745 on Tuesday, down 0.06% from the session prior. This is the third consecutive session where the pair has approached the 1.1600 handle without closing above it.

The euro's gain over the past month and four weeks have been significant, with a 1.39% increase over the past month and 1.01% over the trailing four weeks. However, this growth is still below the 12-month average, with the euro down 0.59%.

The catalyst for Tuesday's pullback was Brent crude reaching $91.76 per barrel, which has revived the inflation premium and the dollar's carry simultaneously. European equities also confirmed the risk tone, with the pan-European Stoxx 600 falling 0.51%, France's CAC 40 losing 0.55%, Italy's FTSE MIB dropping 0.59%, Germany's DAX shedding 0.38%, and the FTSE 100 holding nearly flat at less than 0.1% lower.