• The Two-day FOMC meeting kicks off on Tuesday with a hold priced in for Wednesday’s interest rate decision.
• US consumer sentiment declined in April, while Q1 Employment Cost Index increased.
• Hawkish bets on the Fed continue to favor the USD.

The US Dollar Index (DXY) is presently trading higher at 105.95,  while the two-day Federal Reserve (Fed) meeting kicked off. Markets are expecting a hawkish hold by the central bank, but messaging by Jerome Powell will be key. On Tuesday, positive mid-tier data is acting as a tailwind for the Greenback.

The US economy is witnessing resilience and persistent inflation, which makes a case for a hawkish hold by the Federal Open Market Committee (FOMC), which will likely show their lack of confidence in the progress being made.