Market attention now probably focuses on US inflation data on Thursday. Antje Praefcke, FX Analyst at Commerzbank, assumes that this is unlikely to be positive for the US Dollar.

The next milestone will be the US price data the day after tomorrow 

“I fear inflation would have had to remain almost constant in December (it is expected that it fell from 7.1% to 6.5%) for the market to consider the Fed’s projections to be more credible once again, and for the USD to gain support. Anything else is likely to further weaken the Dollar in the current environment.”

“Perhaps some might listen to Fed Chair Jerome Powell until then, who will be speaking on the independence of central banks at a Riksbank symposium. But let’s be honest, he is unlikely to provide any real news on Fed monetary policy at this stage. As a result, I consider listening to Powell’s speech to be a way of killing time until the next major event.”