• EUR/USD attracts some dip-buying on Monday, though lacks bullish conviction.
• Retreating US bond yields undermines the USD and lends support to the major.
• A looming recession risk in Germany holds back bulls from placing fresh bets.

The EUR/USD pair reverses an intraday dip to the 1.0800 neighbourhood and touches a fresh daily peak during the early European session on Monday. European Central Bank (ECB) officials have been more vocal about the need for more evidence that inflation is returning to the 2% target before lowering borrowing costs. This, along with an improvement in the German Ifo Business Climate, is seen acting as a tailwind for the shared currency and the currency pair amid subdued US Dollar (USD) price action.

That said, concerns about a looming recession in Germany – the Eurozone's largest economy – might hold back bullish traders from placing aggressive bets around the EUR/USD pair. Furthermore, growing acceptance that the Federal Reserve (Fed) will keep rates higher for longer could underpin the Greenback and contribute to capping gains for the major. Investors might also prefer to wait on the sidelines ahead of this week's release of the flash consumer inflation figures from the Eurozone and the US Core PCE Price Index