FX.co ★ Dollar Eases Ahead of Fed Decision

The US dollar index fell to approximately 98.7 on Wednesday, ending a four-day winning streak as investors proceeded with caution ahead of the Federal Reserve's policy announcement. It is widely anticipated that the Fed will maintain the current interest rates, though market participants are keenly observing for any indications of a possible rate cut in September. President Donald Trump continues to exert pressure on the Fed to reduce borrowing costs. Both Fed Governors Christopher Waller and Michelle Bowman, considered potential candidates to lead the central bank, are expected to dissent in this month’s meeting. Additionally, investors are keeping a close watch on forthcoming data releases concerning private payrolls, GDP growth, and pending home sales to gauge the robustness of the US economy. Regarding trade issues, discussions between the US and China in Stockholm concluded on Tuesday without extending the current pause on tariffs. Treasury Secretary Scott Bessent stated that any agreement would need President Trump’s personal approval before proceeding.