The US dollar is trading bearish early on Wednesday as the risk sentiment in global financial markets improves over rising hopes for resumption of economic activity across some countries after a slowdown in the number of coronavirus cases. At the time of writing, the US dollar index DXY is trading around 99.72.

Investors are moving away from the safe haven appeal of the US dollar towards riskier instruments, including stocks and currencies like the AUD and NZD over the past few sessions. However, moves in the US dollar are limited for now as traders cautiously wait for the latest developments at the Fed.

Traders are waiting to hear from the Fed as well as the ECB over today and tomorrow, with special focus on the central banks’ future policy strategy even as the coronavirus pandemic rages on and continues to wreak havoc on the economy. For now, analysts see no change in the Fed’s policy but are eager to hear on the bank’s outlook for the state of the US economy in the near future.

The US dollar was also weighed by the release of disappointing consumer confidence figures in the previous session. The greenback could see some movement today based on what the Fed says even as markets await the release of US’s Q1 GDP data, which is expected to reveal a contraction by 4%.