Comments from Fed officials are set to drive US Dollar's action. The Dollar still faces moderate upside risks this week, but stabilization looks more likely today, in the view of economists at ING.

There is room for the general Fed rhetoric to stay on the hawkish side

“We think markets may feel relatively comfortable with the current pricing for a 5.15% peak rate for now, even though risks are skewed towards another 10 bps of tightening being added into the curve. This means that the Dollar’s upward correction may have a bit more to run, but we doubt this will morph into a sustained USD uptrend from this point on.” 

“There is room for the general Fed rhetoric to stay on the hawkish side and while we think the absence of key data can favour some stabilisation in the Dollar today, risks are skewed towards another small leg higher in the greenback.”