The fall in consumer sentiment echoes the latest Fed Beige Book, which showed retailers had a disappointing holiday season.

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Following a day that saw negative US Durable Goods Order data and a less-than-optimistic Fed Beige Book report, the combination of euro strength, dollar weakness was no surprise.

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U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, durable goods orders, the Chicago Fed midwest manufacturing index and the weekly DOE energy stocks report and the Fed beige book.

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And from the government: the Labor Department's Producer Price Index (inflation), the Commerce Department's new housing starts report and the Fed's Beige Book -- its summary of economic conditions region by region.

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The Fed's beige book, a regular survey of anecdotal data released on January 15th, confirmed that the economy remains weak, but also revealed signs of pick-up in several regions, most notably the industrial north-east.

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Separately, the Fed's "beige book" report on regional economic activity added to a narrative of a moderately strengthening recovery.

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The Fed report, called the Beige Book, provides an overview of economic conditions from Feb. 22 through April 5.

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On Wednesday, the Fed will release its so-called Beige Book, which will showcase sectors of the U.S. economy that are losing, or have already lost momentum.

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The information collected in this latest Beige Book will be used as the basis for the Fed's next policy discussion at its 29-30 January meeting.

BBC: US Fed's Beige Book says economy seeing modest growth