The greenback trades with marginal losses near the 101.80 region when tracked by the USD Index (DXY) ahead of the opening bell in Europe on Wednesday.

USD Index remains capped by 102.00

The index faces a knee-jerk following Tuesday’s pronounced pullback amidst diminishing risk aversion and some improvement in the risk-linked galaxy.

No news from the macro scenario, where the recent resurgence of banking jitters sponsored the return of the risk aversion on Tuesday and propelled the index to the proximity of the 102.00 region.

In the meantime, investors continue to favour a 25 bps rate hike by the Fed at the May 3 event, although the probability of that outcome shrinks a tad to around 75% (from nearly 90% a day ago).

In the docket, Durable Goods Orders will take centre stage later in the session seconded by MBA Mortgage Applications and Advanced Goods Trade Balance.