Early on Monday morning, the US dollar traded cautiously as markets waited for the release of Chinese GDP data. In addition, the US dollar remained under pressure over increased rate cut sentiments.

China’s GDP grew as expected in the second quarter of 2019 at 6.2%, and the dollar continues to trade bearish. At the time of writing, the US dollar index DXY is trading at around 96.84 as it waits on the Fed to cut interest rates in order to tackle low inflation rates in the US.

As of now, markets have almost completely priced in a 0.25% rate cut by the Fed at its upcoming meeting at the end of this month. The likelihood of a 0.5% rate cut now stands at around 20%.