Euro Weighed Down by Germany's Fading Confidence

The euro continued to struggle against major currencies on Tuesday following the release of the German ZEW Economic Sentiment index, which fell more than expected.

The index dropped to 26.0 in February from 31.7 in January, missing forecasts of 30.5 and signaling growing investor caution about Europe's largest economy.

Analysts attribute the decline to geopolitical uncertainties, sluggish global trade, and the European Central Bank's cautious approach to monetary policy.

The euro's weakness was most visible against the US dollar, with EUR/USD trading near 1.0450.