The US dollar has rallied a bit in the early hours of Tuesday, as the market continues to try to determine how long the Fed will have to keep rates higher. At this point, the US dollar had been oversold, so this move makes sense.

The EUR/USD pair rose to 1.1418 before pausing, as bearish sentiment towards the US dollar intensified following the release of disappointing US macroeconomic data and escalating trade tensions.

Euro (EUR) is likely to rise further; overbought conditions suggest 1.1495 is out of reach for now. In the longer run, EUR outlook is revised to positive; the immediate levels to watch are 1.1495 and 1.1530, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The U.S. Dollar steadies near 98.90 ahead of JOLTS data. GBP/USD consolidates below $1.3531; EUR/USD eyes breakout above $1.1454.

EUR/USD pulls back from highs with Eurozone inflation in focus

EUR/USD edges lower after registering over 0.50% gains in the previous session, trading around 1.1420 during the Asian hours on Tuesday. The US Dollar (USD) recovers its ground on technical correction, despite growing concerns regarding stagflation in the United States (US).