EUR/USD loses momentum above the 1.0800 mark amid modest rebound of US Dollar

The EUR/USD pair trades on a softer note amid a modest rebound of the US dollar (USD) during the early Asian session on Monday. The US January PCE inflation data will be in the spotlight this week. This data could trigger volatility in the market. At press time, EUR/USD is trading at 1.0819, losing 0.03% on the day. 

The FOMC minutes of the January 30-31 meeting stated that the interest rate was likely at its peak for this tightening cycle. The Federal Reserve (Fed) officials will consider the incoming data to determine whether the current stickiness in US inflation is temporary or it is persistent. The US Core Personal Consumption Expenditures Price Index (Core PCE) on Thursday might offer some hints about the inflation trajectory in the US. The weaker-than-expected data might weigh on the US Dollar and act as a tailwind for the EUR/USD pair. 

The European Central Bank (ECB) policymakers want to wait until first-quarter data confirms declining inflationary pressure, but an increase in wage rise will allow them to somewhat decrease the present monetary policy's restrictiveness. The ECB members agreed that the policy will be eased, but there is no clear consensus yet on the precise timing. Several ECB policymakers will wait for additional data before easing monetary policy. 

Market players will keep an eye on the US Gross Domestic Product Annualized for the fourth quarter (Q4) on Wednesday. On Thursday, the German January Retail Sales and the first reading of. German Consumer Prichighlight this week will be the US Core Personal Consumption Expenditures Price Index (Core PCE) on Thursday. Traders will take cues from the data and find trading opportunities around the EUR/USD pair.