EUR/USD struggles to gain near 1.1000 mark ahead of US ISM PMI

• EUR/USD struggles to hold ground above the 1.1000 barrier on Tuesday.
• European Central Bank (ECB) President Christine Lagarde hinted at a possible pause in September.
• Market players will take fresh cues from the global Manufacturing PMI and German Unemployment rate data for June.

The EUR/USD pair struggles to gain and holds ground below the 1.1000 mark heading into the early European session on Tuesday. Market players await the US Manufacturing Purchasing Managers Index (PMI) data for fresh cues later in the North American trading hours. The major pair currently trades around 1.0990, down 0.06% on the day. 

About the data, Eurostat reported on Monday that the Eurozone Core Harmonized Index of Consumer Prices (HICP) in July rose by 5.5% YoY and 5.3% for the headline CPI. The flash Q2 Eurozone Gross Domestic Product (GDP) expanded by 0.3% QoQ and 0.6% YoY. Additionally, German Retail Sales for June increased by 1.6% year on year, compared to -6.3% expected and -2.1% prior, while the monthly figure fell to -0.8%, compared to -0.2% estimated and 1.9% previously.

It’s worth noting that the European Central Bank (ECB) raised interest rates by 25 basis points (bps) to 4.25% last week. ECB President Christine Lagarde stated that the central bank will move towards achieving a medium-term inflation target of 2%. The ECB raised interest rates for the ninth consecutive time last week, but President Christine Lagarde hinted at a possible pause in September as inflationary pressures showed tentative signs of easing and fears of a recession grew.

Across the pond, the US Dollar attracts some buyers and edges higher to the 102.00 mark on Tuesday. The index ignored the softer US inflation data on Friday. 

The US Bureau of Economic Analysis reported last week that the Personal Consumption Expenditures (PCE) Price Index fell from 3.8% in May to 3% in June, below the market expectation of 3.1%. The figure grew at its slowest pace in over two years. Meanwhile, the Federal Reserve's preferred measure of inflation, the Core PCE Price Index, came in at 4.1% annually, down from 4.6% in May and below market expectations of 4.2%.

Additionally, the United States published low-tier economic figures on Monday. The US Chicago Purchasing Managers Index (PMI) for July came in at 42.8 from 41.5 in June, versus 43 expected, while the Dallas Manufacturing Index edged higher to -20 in July from -23.2 in June.

Market participants will keep an eye on the global Manufacturing PMI data and the German Unemployment rate for June. The week's highlight will be the US Nonfarm Payrolls report, due on Friday. The US economy is expected to have created 180,000 jobs. At the same time, the US employment rate is expected to remain unchanged at 3.6%.