Ella 
Against the backdrop of a so far decent rally in risk assets at the start of the week, the U.S. Dollar Index gave back some of its recent two-day rally to around 106.80.
Although the index recouped some of its losses from the beginning of the month in the second half of last week, the dollar lost momentum as a Fed spokesman struck a dovish tone once again. In addition, while the Fed’s “hawkish” policy is expected to remain unchanged for the time being, the likelihood of another rate hike before the end of the year seems to have diminished recently.
In addition, escalating geopolitical concerns in the Middle East and the resulting rise in risk aversion remain potential sources of dollar strength.
Later in the North American session, the United States will release the New York State Manufacturing Index, followed by the monthly budget statement and a speech by Philadelphia Fed President Patrick Harker (Vote, Hawk).
