US Dollar Index remains steady near 99.00 ahead of Fedspeak

• US Dollar Index maintains its position as traders adopt caution ahead of speeches from Fed officials.
• Trump announced plans to appoint both the Fed Chair and a replacement for Kugler by the end of the week.
• Market sentiment remains cautious as investors await President Trump's upcoming trade deadline on Friday.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady after two days of slight gains and trading around 98.80 during the European hours on Wednesday. Traders will likely observe the speeches from the Federal Reserve (Fed) policymakers later in the day, including Susan Collins, Lisa Cook, and Mary Daly.

The Greenback may gain ground as traders adopt caution following US President Donald Trump's announcement on Tuesday that he will appoint the Fed's Chair and Kugler's replacement by the end of the week, and confirmed his choices for Chairman, including White House economic adviser Kevin Hassett, former Fed governor Kevin Warsh, and two other people. Trump also confirmed that Treasury Secretary Scott Bessent is not his choice for the Fed's Chair.

However, the US Dollar may struggle amid rising bets on an interest rate cut by the US Federal Reserve (Fed) in September. Markets continued to reflect over a 90% probability of a Fed rate cut in September, with roughly 60 basis points of total easing expected by year-end.

Market sentiment remains cautious ahead of US President Donald Trump's latest trade deadline on Friday, when a fresh round of high tariffs will go into effect on multiple nations unless last-minute deals are reached to negotiate lower levies. Trump also threatened to impose tariffs of up to 250% on pharmaceutical imports and potential levies on semiconductors.