The USD Index (DXY), which tracks the greenback vs. a basket of its main competitors, navigates a narrow range around the 101.30 zone on turnaround Tuesday.

USD Index focuses on data

The index remains under pressure and the near-term outlook seems to point to the continuation of the downtrend with the initial support at the 101.00 mark ahead of the 2023 low near 100.80.

So far, investors seem convinced of another 25 bps rate hike by the Federal Reserve at its meeting on May 3 amidst hawkish Fedspeak and with inflation still way above the Fed’s 2.0% target.

Simultaneously, and also weighing on the buck and yields, emerges the speculation of a pause in the Fed’s hiking cycle soon after the May event.

In the US data space, the Consumer Confidence gauged by the Conference Board will grab all the attention later in the NA session seconded by the FHFA’s House Price Index and New Home Sales.