US Dollar Dips as Consumer Confidence Turns Cloudy

The dollar trades softly in the red, seeing earlier attempts to recline failing. US traders will hear from no less than four Fed members this Tuesday. The US Dollar Index snaps 103 and enters in the 102-region.

The US Dollar is losing its grip again on the situation as this Tuesday is turning into red numbers again for the US Dollar Index (DXY). One of the reasons for the selling pressure emerging again after a brief spike higher, comes on the back of surprise comments from European Central Bank member Joachim Nagel who said that the ECB might consider to start unwinding its historic bond portfolio.

The selling of the bond portfolio would mean European rates staying higher for longer, and thus could even overperform against US rates, meaning more US Dollar weakness to possibly come in the near future.

Besides some rather light US data points, markets can look forward to comments from no less than four US Federal Reserve members. Two of them are actually speaking twice this Tuesday, so that makes it in total seven guidance events for the markets. Expect to see traders look for clues on any further confirmation that the Fed is truly done hiking, or more tightening is needed according to some members.