The US dollar is trading steady early on Wednesday as traders wait for the outcome of the Fed’s July meeting to be announced. At the time of writing, US dollar index DXY is trading at around 98.07.

Expectations are high for a rate cut by 0.25%, but a 0.5% rate cut cannot be ruled out either. If the Fed announces a rate cut today, it will be the first in over a decade. It could also signal further easing of monetary policy to protect the US economy from the effect of ongoing trade tensions and weakening economic growth plaguing leading markets around the world of late.

Markets are also expecting the Fed to cut interest rates further, by up to 1% by the end of 2020. In the face of low inflation and trade disputes with multiple countries, several leading central banks have adopted a dovish stance on recent times. Will the Fed follow suit today, and how dovish will they sound?