The next clear catalyst on the agenda is a speech by Fed Chair Powell. Economists at ING believe that Powell will remind the market of the central bank's hawkish determination, supporting the Dollar.

Macro environment continues to favour the USD

“We would say that Chair Powell has recently shown to be at the more hawkish end of the spectrum and that tonight’s event risk is a positive one for the Dollar.”

“Dollar price action after Chair Powell’s speech should also tell us something about FX positioning. If the Dollar fails to rally on a hawkish speech it may continue to tell us that the market is caught long Dollars at higher levels and that some further consolidation may be due into December.”

“For the time being, we think the macro environment continues to favour the USD and see Powell’s speech, the October PCE price data (Thursday) and November jobs data (Friday) as upside risks to the Dollar.”