The dollar index (DXY00) today is trading slightly lower by -0.05%. The dollar is trading on the defensive ahead of the 2-day FOMC meeting that begins today, which could yield a dovish outcome with hints of further rate cuts and a possible end to quantitative tightening.
The dollar remains under pressure from the ongoing US government shutdown. The longer the shutdown is maintained, the more likely the US economy will suffer and the more likely the Fed will have to cut interest rates.
