EUR/USD treads water above 1.1550 ahead of ZEW Survey data from Germany

• EUR/USD maintains its position ahead of key economic data from Germany.
• France's President Macron reappointed Lecornu as Prime Minister, but opposition leaders quickly filed a no-confidence motion against his government.
• The US Dollar struggles due to rising odds of further Fed rate cuts by year-end.

EUR/USD inches higher after registering nearly 0.5% losses in the previous session, trading around 1.1570 during the Asian hours on Tuesday. The pair holds ground ahead of the final September Harmonized Index of Consumer Prices (HICP) and ZEW Survey data from Germany.

The EUR/USD pair weakened as the Euro (EUR) came under pressure amid ongoing political unrest in France. President Emmanuel Macron reappointed Sebastien Lecornu as Prime Minister, who has since formed a new cabinet. However, opposition leaders Marine Le Pen and Eric Ciotti have already filed a no-confidence motion in an attempt to oust Lecornu's government.

The pair draws support as the US Dollar (USD) remains subdued due to rising odds of further rate cuts by the Fed by year-end. The CME FedWatch Tool suggests that markets are now pricing in nearly a 97% chance of a Fed rate cut in October and a 92% possibility of another reduction in December.

Philadelphia Fed President Anna Paulson said on Monday that rising risks to the job market argue for more interest rate cuts by the US central bank, as trade tariffs now appear unlikely to push up inflation as much as expected.

The Greenback also struggles as traders adopt caution amid the ongoing US government shutdown weighs on the US economy. Last week's missed paychecks and the suspension of billions of dollars' worth of government services are likely to ripple beyond federal employees and impact the broader public.