The US dollar is trading steady as investors are wary about entering new positions before the upcoming ECB meeting scheduled to take place on Thursday. At the time of writing, the US dollar index is trading at around 98.34, with the dollar remaining supported as the market sentiment remains cautious.

Markets are widely expecting the ECB to announce easing measures to support the weakening Eurozone economy in the face of global trade tensions. The ECB meeting tomorrow could offer some direction for other central banks like the Fed and the BOJ that are due to hold their meetings next week.

The ECB is expected to cut interest rates and sound dovish, even though it would keep rates in negative territory. In addition, the central bank could announce some relief measures to compensate banks who have to deal with very low interest rates.

Although there has been a slight improvement in the mood in global financial markets over positive developments in the US-China trade war, the weakness in the global economy continues to impact trades across the world.