US Dollar Index Steady at 97.60 Ahead of Fed Decision.

US Dollar Index (DXY) holds steady near 97.60 as markets await Fed decision.

The US Dollar started the week with a mild bearish bias, though price action stays rangebound as traders await Wednesday’s Fed decision. The DXY trades flat near 97.50 in early European hours, with downside limited above support and upside capped below last week’s high.

Meanwhile, U.S. consumer confidence data added to pressure on the Greenback. The University of Michigan Sentiment Index fell to 55.4, its weakest in four months, versus expectations of 58.0. Higher prices and trade tariffs weighed heavily on household sentiment, with most consumers citing reduced purchasing activity.

While short-term inflation expectations held steady, longer-term price pressures are projected to rise. Combined with last week’s soft inflation readings, the data strongly support expectations for a 25 bps Fed rate cut on Wednesday, alongside a likely dovish tone from Powell. This outcome could reinforce further weakness in the Dollar.