Euro makes move for 1.10

The EUR/USD pair struggles to gain momentum and holds below the 1.1000 barrier on Tuesday. The major pair remains under pressure as investors worry about the recession in the bloc ahead of the US inflation data release on Thursday. EUR/USD currently trades around 1.0988, losing 0.13% for the day.

That said, the Eurozone Sentix Investor Confidence improved from -22.5 in July to -18.9 in August, versus the market consensus of -23.4. Sentix Managing Director Patrick Hussy said that the Eurozone economy is still in recession. As a result, there can be no delight in this development.

Earlier this week, German Industrial Production figures for June fell to -1.5% MoM, worse than expectations of -0.4% and -0.1% prior (revised). Nevertheless, the European Central Bank's (ECB) peak rate speculations were sparked by the global rating agency Fitch Ratings, which impacted the Euro against its rivals.

On the US Dollar front, the Greenback attracts some follow-through buying following the hawkish comment from a Federal Reserve (Fed) policymaker. Atlanta Fed Governor Michelle Bowman indicated on Monday that additional rate hikes will likely be required to return inflation to target levels. The odds of additional rate hikes for the entire year might lift the USD and cap the upside in the EUR/USD pair.

Moving on, market players will take cues from the German Harmonized Index of Consumer Prices (HICP) YoY for July, due on Tuesday. The focus will shift to the US Consumer Price Index (CPI) on Thursday. This event could significantly impact the US Dollar and give a clear direction to the EUR/USD pair.