Ella 
EUR/USD remains under pressure below 1.1000 in Asia on Tuesday
Eurozone July Sentix Investor Confidence Index improves to -18.9 from -22.5
Dollar attracts some follow-through buying after hawkish Fed policymakers comments
Traders will take cues from German reconciled inflation and U.S. inflation data
EUR/USD struggled to gain momentum and hold below 1.1000 on Tuesday. The pair remained under pressure as investors worried about a recession in the euro zone ahead of U.S. inflation data on Thursday. EUR/USD is currently trading around 1.0988, down 0.13% on the day.
The Sentix Investor Confidence Index for the Eurozone improved from -22.5 to -18.9 in July, compared with the market consensus of -23.4. Patrick Hussy, managing director of Sentix, said the euro zone economy is still in recession. Therefore, this development trend is not optimistic.
Earlier this week, German industrial production fell to -1.5% on month in June, missing expectations of -0.4% and the previous (revised) -0.1%. Still, speculation of a peak in interest rates from the European Central Bank (ECB), fueled by global ratings agency Fitch Ratings, weighed on the euro against major currency pairs.
On the U.S. dollar front, the greenback attracted some follow-through buying following hawkish comments from Fed policymakers. Atlanta Fed President Michelle Bowman said on Monday that further rate hikes may be needed to bring inflation back to target. Hopes of further rate hikes throughout the year could lift the greenback and limit EUR/USD gains.
Market participants will take their cue from Germany’s July reconciled inflation rate due on Tuesday. The focus will turn to U.S. CPI due on Thursday. The event could have a big impact on the dollar and give EUR/USD a clear direction.
