Dollar Higher, Nasdaq lower ahead of Barr’s Speech

The US Dollar is trading in the green on Tuesday’s European morning, posting gains against most G20 currencies. However, the dollar was easing a touch as a firm risk-on tone returned on Monday in US equity markets.

Earlier on Tuesday, Asian stocks took over the mood on Tuesday, with the Japanese Nikkei Index posting a fresh 34-year high at the closing bell. On the economic front, another light agenda is due on Tuesday, with only second-tier data releases.

Traders will be on the lookout to hear Federal Reserve’s Vice Chairman Michael Barr speak later this Tuesday. There are no big catalysts on the docket in the runup to the US Consumer Price Index (CPI) report on Thursday.

The National Federation of Independent Business (NFIB) has released its Business Optimism Index for December, with December coming in at 91.9.

European Central Bank (ECB) member Mário Centeno said that the ECB does not need to wait until May to make a rate decision, with December inflation being considered very good news in the fight against inflation. The Euro takes a step back against the US Dollar (EUR/USD) on the back of these dovish comments.

At 13:30 GMT, the US Trade Balance numbers for November were released, showing a $90.3 billion deficit in October and an $89.4 billion deficit in November. The US Redbook for the first week of January went from 5.6% to 5.9%. Fed’s Vice Chairman Michael Barr is due to speak around 17:00 GMT, and the US Treasury will be heading to markets to allocate a 3-year note around 18:00 GMT.