The EUR/USD currency pair climbed to nearly 1.1165 during early Asian trading hours on Tuesday, up from the previous level of around 1.1150, according to FX Street.
Despite the modest gain, FX Street noted that the upside potential for the euro against the US dollar could be constrained by mounting fiscal and political instability in France. Market participants remain cautious as these factors may weigh on the euro's strength in the near term.
Attention is now turning to key US inflation reports expected later this week, which could significantly influence the EUR/USD trajectory. Japanese investors will be closely watching these developments given their impact on global currency and equity markets.