The euro was lower against its most major counterparts in the European session on Tuesday, after a data showed that Eurozone inflation eased more than expected in May to its lowest level in over a year, putting pressure on the European Central Bank policy makers to do more to stimulate the economy when they meet this week.

Flash estimate from Eurostat showed that inflation slowed to 1.2 percent in May from 1.7 percent in April, while economists had predicted a 1.5 percent price growth.

The latest inflation rate was the lowest since April last year, when it was at the same level.

The rate fell even further from the ECB's inflation goal of just below 2 percent.

Core inflation, which excludes prices of energy, food, alcohol & tobacco, eased to 0.8 percent from 1.3 percent. Economists had expected a rate of 1.1 percent. In March, core inflation was 0.8 percent.

The currency traded mixed against its major counterparts in the Asian session. While it rose against the greenback and the franc, it held steady against the yen and the pound.

The euro dropped to 1.1240 against the greenback, from a 1-1/2-month high of 1.1277 hit at 3:00 am ET. The euro is seen testing support around the 1.11 region.

After rising to near a 5-month high of 0.8902 against the pound at 3:45 am ET, the euro retraced gains with the pair trading at 0.8876. If the euro drops further, 0.87 is possibly seen as its next support level.

Survey data from IHS Markit showed that the UK construction activity contracted unexpectedly in May.

The IHS Markit/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index fell to 48.6 in May from 50.5 in April.

The euro eased back to 121.49 against the Japanese yen, from a 4-day high of 121.73 touched at 3:15 am ET. The euro is likely to test support around the 119.00 region.

Data from the Bank of Japan showed that Japan monetary base rose 3.6 percent on year in May, coming in at 510.808 trillion yen.

That's up sharply from the 3.1 percent increase in April.

The euro was trading at 1.7056 against the kiwi and 1.6104 against the aussie, down from its early high of 1.7099 and a weekly high of 1.6162, respectively. Further downtrend may take the euro to support levels of around 1.68 against the kiwi and 1.59 against the aussie.

The single currency pared gains to 1.5101 against the loonie, from a high of 1.5140 set at 3:00 am ET. Next key support for the euro is seen around the 1.50 level.

The euro held steady at 1.1176 against the franc, after having retreated from a high of 1.1190 seen at 3:45 am ET. At Monday's close, the pair was worth 1.1156.

Looking ahead, the U.S. factory orders and durable goods orders for April will be out in the New York session.

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