• US Dollar has declined ahead of today's FOMC decision.
• Consensus expects a 25 bps cut, but some analysts predict a larger 50 bps cut.
• Fed's Dot Plot will be closely watched, as they are expected to show a dovish shift.

The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, has declined ahead of today's Federal Open Market Committee (FOMC) decision. Market consensus anticipates a 25-basis-point (bps) rate cut, although some analysts predict a larger 50 bps reduction. The Fed's Dot Plot, which outlines the FOMC members' projections for future interest rate movements, will be closely scrutinized for any signs of a dovish shift.

The pricing of the markets of a 50 bps cut seems unrealistic as, despite weakness in the labor market, the overall economy is showing resilience.