Ella 
In the Asian market on Tuesday, the EUR/USD rebounded after falling for two consecutive days, rising and approaching the 1.0930 mark. However, EUR/USD encountered resistance ahead of the release of US CPI data as markets remained risk-off.
Markets expect U.S. inflation to rise on a monthly basis in February, but the annual rate is expected to be flat. Stronger inflation could dampen prospects for an imminent interest rate cut by the Federal Reserve, potentially boosting the U.S. dollar (USD) and weighing on the EUR/USD pair.
The CME FedWatch Tool shows the probability of a 25 basis point (bps) rate cut in March and May has declined slightly, with probabilities of 3.0% and 21.9% respectively. The probability of a 25 basis point rate cut in June fell to 55.2%.
Meanwhile, ECB President Christine Lagarde took a cautious approach, emphasizing the need to see more evidence before considering adjusting interest rates. The European Central Bank chose to maintain its current monetary policy unchanged and reiterated its commitment to guiding inflation back to its expected target range.
The ECB has made it clear that it will adhere to appropriately stringent policy measures for as long as necessary to achieve its inflation target. The upbeat outlook surrounding the European Central Bank could provide support for the euro, boosting EUR/USD. The German consumer price index released on Tuesday will be the focus of the market.
