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Euro holds recent gains with markets focusing on US inflation numbers

November 10, 2026

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EUR/USD edges up on Tuesday, reaching levels near 1.1230, after bouncing from 1.1137 on Monday.
Oil prices have dropped about 20% in the last week, providing important relief to Eurozone economies.
Investors are wary of selling the USD on Tuesday, ahead of the release of the US CPI report.

The Euro (EUR) edges up against the US Dollar (USD) on Tuesday, holding gains from a sharp rebound on Monday, with traders bidding their time, ahead of the release of US Consumer Price Index (CPI) figures due later in the day. The EUR/USD pair is trading just below 1.1230 at the European session opening times, after bouncing from 1.1137 lows on Monday.

The common currency has drawn support from a risk-on market at the week opening, as reports of advances in the diplomatic efforts to bring the Middle East conflict to an end have pushed Oil prices to fresh two-month lows.

Beyond thst, US President Donald Trump discarded any attack on Iran while negotiations continue, which contributed to improving market sentiment. Against this backdrop, Brent Oil has dropped more than 20% in the last week, providing important relief to the Eurozone’s Oil-importing economies.

Investors’ focus turns to the US CPI release with Fed policy in the background

Market volatility, however, has eased on Tuesday, as investors brace for the release of US CPI figures. The report will miss year-on-year figures this time, amid a lack of data due to the 2025 Federal Government shutdown, and monthly figures are expected to show a slowdown in price pressures.

These figures follow an upbeat US labour market report last Friday, which showed outstanding growth in net employment in October. Before that, Gross Domestic Product (GDP) figures revealed that the economy grew at a 3.4% annualised rate in the third quarter. All in all, an ideal scenario for the Federal Reserve (Fed) to tighten its monetary policy further over the coming months.

Strategists at Brown Brothers Harriman observe that the Dollar “pared back some of Friday’s strong October non-farm payrolls gains,” although they note that the broader backdrop remains constructive for the greenback, as “robust US economic activity, favorable labor market conditions and sticky underlying inflation back the Fed’s hawkish bias, keeping rate differentials supportive of USD.”