Euro Steady Near 1.1400, Cheaper Energy Adds to Dilemma

The euro was modestly higher against the dollar on Tuesday, changing hands just below the 1.1400 handle. During the session, EUR/USD touched a low just above 1.1350 and briefly rose above 1.1400 before settling near the round number.

The single currency drew some support from a drop in energy costs, which eases inflation pressures in the eurozone. However, cheaper energy also signals weakening global demand, creating a conundrum for the European Central Bank's policy path.

Traders now look ahead to upcoming economic data for further direction.