Euro Rebounds Near 1.1500 as Dollar Softens on Data

Investors focus on German data and Eurozone inflation figures as ECB and Fed warn about energy-driven inflation risks.

Mar. 31, 2026 at 5:49am

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A high-contrast black and white close-up photograph of intricate banking equipment and financial infrastructure, conveying the stability and security of the global monetary system through its heavy, industrial aesthetic.As central bankers warn of inflation risks, the complex machinery of global finance continues to power the Eurozone economy.NYC Today

The Euro traded near 1.1480 on Tuesday, rebounding after five consecutive days of losses as the US Dollar weakened slightly. However, overall sentiment remains cautious, with investors favoring safe-haven assets due to geopolitical risks. Traders are closely watching key euro-area data releases, including German Retail Sales, Unemployment, and Eurozone preliminary March HICP inflation figures, which could shape expectations for European Central Bank policy.

Why it matters

The Euro's performance is closely tied to the European Central Bank's monetary policy decisions, which are heavily influenced by inflation data. With ECB and Fed officials warning about energy-driven inflation risks, the upcoming economic reports will be crucial in determining the central bank's next steps and the future direction of the Euro.

The details

EUR/USD edged higher during Tuesday's Asian session, trading near 1.1480 after five consecutive days of losses. The pair's rebound comes as the US Dollar weakens slightly, though overall sentiment remains cautious due to ongoing geopolitical risks. Investors are now focused on key euro-area data releases, including German Retail Sales and Unemployment figures for February, as well as the Eurozone's preliminary March HICP inflation data. These reports could shape expectations for European Central Bank policy, as ECB officials continue to highlight inflation concerns. Bank of France Governor François Villeroy de Galhau said the ECB stands ready to act if price pressures rise further, noting that the current energy shock linked to tensions involving Iran will likely push inflation higher in the short term.

  • EUR/USD traded near 1.1480 in Tuesday's Asian session.
  • Germany will release Retail Sales and Unemployment figures for February.
  • The Eurozone will publish its preliminary March HICP inflation data.

The players

François Villeroy de Galhau

Bank of France Governor who said the ECB stands ready to act if price pressures rise further.

Jerome Powell

Federal Reserve Chair who said long-term inflation expectations remain stable and that current policy allows flexibility to respond to new risks.

John Williams

New York Fed President who noted that policy is well positioned but pointed out that labor market signals remain mixed.

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What they’re saying

“The bank stands ready to act if price pressures rise further.”

— François Villeroy de Galhau, Bank of France Governor

“Long-term inflation expectations remain stable, and current policy allows flexibility to respond to new risks.”

— Jerome Powell, Federal Reserve Chair

“Policy is well positioned, but labor market signals remain mixed.”

— John Williams, New York Fed President

What’s next

Investors will closely monitor the upcoming German data and Eurozone inflation figures, which could shape expectations for European Central Bank policy and the future direction of the Euro.

The takeaway

The Euro's performance is closely tied to inflation data and the ECB's monetary policy decisions. With central bank officials warning about energy-driven inflation risks, the upcoming economic reports will be crucial in determining the next steps for the Eurozone currency.