Economists are forecasting a steady bearing for business confidence in this month's IFO report.

The greenback was generating a little heat on a few second tier-economic releases Thursday morning; but the market was holding back on placing its big positions until the hedge fund mess unfolds or a big indicator comes along to shake things up.

The US economic calendar has passed through another morning session without the complications of a top market-moving economic indicator to disrupt price action.

Whereas yesterday’s housing data was certainly siding with the bears, Tuesday’s round of starts and building permits gave little to either side of the market. Now, with the docket clearing out expectations for event risk later in the week, the market is turning to technicals and interest rates for direction.

The dollar started to give back some of its gains last Friday when last month’s inflation data failed to support growing speculation of a possible rate hike from the Fed.

The US dollar has been bound in a general rising trend for the past two months. However, after this past week’s economic calendar failed to support the growing speculation surrounding a neutral Fed for the rest of year, the trend likely ran out of steam.

Traders had to endure three distinct waves of event risk from Friday’s economic calendar.

The greenback overcame considerable event risk yesterday when the Treasury Department put off a trade war and the Beige Book stayed on point with its growth and inflation outlook.

Despite spotty performance among the majors, the dollar was forging higher Wednesday morning with the aid of a strong consumer spending report. However, the greenback’s gains have been capped while the market waits for policy officials and politicians to deliver their respective reports.

The dollar traced out its second session of tight ranges in the majors as market participants dismissed low level economic indicators to prepare for tomorrow's action.