The USDInd dipped to 98.7 on Wednesday, snapping a four-day winning streak as market participants adopted a cautious stance ahead of the Federal Reserve’s policy announcement.
While the Fed is expected to keep interest rates unchanged, investor focus has shifted to the tone of Chair Jerome Powell’s statement and any clues pointing to a potential rate cut in September. Political pressure continues to mount, with President Donald Trump intensifying calls for lower borrowing costs.
Geopolitical risks are influencing sentiment. U.S.-China trade talks concluded in Stockholm without concrete outcomes, leaving the fate of the current tariff truce in the hands of Trump, just days before the August 12 deadline.
Despite a recent rise, the dollar index is struggling to maintain momentum amid global uncertainties, upcoming economic data releases, and central bank meetings across major economies.
With markets jittery and investor sentiment cautious, the next moves by the Fed and developments in global trade policy will be pivotal in determining greenback’s trajectory.
The Fed rate decision is scheduled for Wednesday, July 30 at 6:00 p.m. UTC, followed by the Fed press conference at 6:30 p.m. UTC. At the time of writing the markets expected around 2 rate cuts until the end of this year.
