Consumer prices continued to decline last month, but missed the analysts' consensus estimate of 2.9%.

EURUSD fell early Tuesday, falling from $1.08 as forex traders reacted to the latest US inflation report. After days of sideways trading, the exchange rate fell about 0.7% to $1.0720 after January consumer price data showed the U.S. economy had not cooled as expected.

Inflation in January was 3.1%, above the expected level of 2.9%, but below December's level of 3.4%. While the markets have been sending out good vibes, thoughts and prayers in an attempt to generate more evidence that inflation is consistently falling and heading towards 2%, home prices and rents have pushed the overall figure higher.

The Federal Reserve has another tipping point as policymakers need to decide when to start cutting interest rates. The consumer price index is the main indicator tracked by the central bank as it is closely linked to the level of interest rates. Higher font suggests that rates should remain high for a long time. A lower reading, on the other hand, would persuade Fed officials to continue with the expected