Dollar hovers near three-month low ahead of US consumer confidence data

Dollar declined in European trade against a basket of major rivals after a two-day hiatus from gains, as demand slows down on the greenback amid improving risk appetite. 

Investors await a batch of important US data later today about consumer confidence, and tomorrow we're waiting for Fed Chair Jerome Powell's speech. 

The Index

The dollar index fell 0.6% to 106.05, after closing up 0.6% yesterday, the second profit in a row away from three-month lows at 105.32. 

The greenback is gaining ground following stricter than expected statements from several Fed officials. 

Fed Statements

Fed Saint Louis President James Bullard said the ECB needs to raise interest rates by a bit more, while New York Fed President John Williams said the Fed needs to carry on its path of rate hikes.

Fed Rates

Such statements changed market bets on a 0.5% rate hike in December from 75% to 70%, while chanced of a 0.75% rate hike rose from 25% to 30%.

Risk Apetite

The dollar fell today as risk appetite improved in the markets, while Asian stocks advanced, led by Chinese stocks, hurting demand on safe haven.

Investors now mostly expect Chinese authorities to control ongoing protests and alleviate some of the strict Covid 19 restrictions.

US Data

Later today, the CB consumer confidence index is expected at 100.00, down from 102.5 in October.