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  • EUR/USD picks up bids, as USD index retreats, Treasury yields turn negative
  • Next of relevance for the EUR remains the German Prelim CPI and US macro data.

The EUR/USD pair is seen attempting another run higher in the European session, as the bulls look to regain the 1.1150 barrier amid a broad US dollar pullback ahead of the German and US inflation figures.

USD dynamics to remain the main driver

The spot caught a fresh bid-wave and hit session highs at 1.1149, having bounced-off from the lower range near 1.1130 region. Broad-based US dollar retreat from nine-week highs of 98.21 could be the main reason behind the EUR/USD bounce.

The USD bulls take a breather from the recent hawkish Fed cut bets-led surge, as Treasury yields turn negative across the curve amid risk-off in the European equities and ahead of the key US Core PCE Price Index data.

However, the recovery continues to appear shallow amid a spate of mixed Eurozone Confidence and Economic Sentiment indicators while a fall in the German Gfk Consumer Confidence Survey to 9.7 in August remains a weight on the shared currency.

All eyes now remain on the German Prelim CPI and the US Core PCE Price Index due later today for fresh trading impetus. Meanwhile, the price action could be limited ahead of the key US-China trade talks and FOMC decision.

EUR/USD levels to watch