• Markets foresee a hawkish hold stance by the FOMC, influencing the DXY Index in the upcoming sessions.
• US Job Openings and ISM PMI figures reported on Wednesday came in weak.
• The session highlight will be Fed Chair Jerome Powell’s presser.

The US Dollar Index (DXY) is trading mildly lower on the day at 106.2 ahead of the highly-anticipated Federal Open Market Committee (FOMC) monetary policy decision. Markets are betting on a hawkish hold stance from the Federal Reserve (Fed), which could make investors adjust their expectations on interest rates. Earlier in the session, mixed data pushed the index down.

Overall, the US economy exhibits robust growth and persistent inflation, putting upward pressure on US yields, which acted as a tailwind for the Greenback in the last sessions. A hawkish Fed has created a favorable environment for the Dollar due to policy divergences against its peers.