EUR/USD: Upside still capped by 1.1150 ahead of German/ Eurozone data

• King dollar rules amid likely hawkish Fed cut, keeps the EUR/USD bounce limited.

• Focus on EUR/GBP flows, German Prelim CPI and trade talks for fresh impetus.

The EUR/USD pair looks to extend its Asian consolidative mode below the 1.1150 barrier into the European session, as the focus now shifts towards the German and Eurozone macro news for the next push.

FOMC begins its 2-day monetary policy meeting on Tuesday

A tug-of-war between the bulls and bears leaves the pair modestly flat, as a broad-based US dollar strength limits the bounce on one hand while on the other hand, the GBP sell-off driven EUR/GBP rally keeps the buoyant tone intact around the shared currency.

The pound continues to suffer from hard-Brexit jitters, as a no-deal Brexit outcome almost looks certain under the leadership of Boris Johnson and his team of ardent Brexiteers. Meanwhile, the greenback continues to hold firmer near 2-month tops versus its main rivals amid increased bets of a smaller Fed rate cut on Wednesday and better US fundamentals.

Markets now look forward to fresh economic drivers due later today, including the German Prelim CPI,  Eurozone Confidence numbers and US Core PCE Price Index, for near-term trading opportunities ahead of the key US-China trade talks and FOMC decision.

EUR/USD levels to watch