All eyes will focus on the outcome of Federal Reserve's first meeting in 2020 later on Wednesday, with no expectations of any change in monetary policy, as most polls indicated the Fed would hold interest rates for a while.
The market forecast that the Fed is likely to maintain interest rates is 87 percent, while 13 percent predict a quarter-point interest rate hike.
Although expectations are in favor of seeing no change, investors will focus on the statement that will clarify any move the Fed may see, which will have a direct impact on the markets.
Federal Reserve Governor Jerome Powell will also speak and his remarks will have a direct impact on markets in general and on the dollar in particular.
The main reason why the Fed might not take any new step today is the measures announced by the central bank last year, as policymakers cut interest rates three times in order to support the economy, especially amid the trade dispute between Washington and Beijing.
In addition, there are no indicators signaling the economy is suffering from stagnation, while inflation levels are still below 2 percent, which is close the government target.
However, there are still some uncertainties about economic conditions, particularly in the manufacturing sector, and lower wage growth than before, as well as weakness in business investment, all of which remain some concerns for the Fed.
Any hawkish remarks
are likely to push the dollar higher, while any hawkish comments about the
future of interest rates may push the dollar down.