Today, policymakers at the US Federal Reserve will conclude their two-day meeting and will announce the decision on the interest rate as well as release projection materials at 18:00 GMT. A speech by Chair Janet Yellen is also scheduled after the announcement. There some key points to note ahead of the FOMC announcement,

• The financial market is almost sure about a rate hike From the Federal Reserve at today’s meeting. Currently, the market is pricing a 96 percent probability of a 25 basis points rate hike. It basically means that a hike is fully priced and may not be a positive development for the dollar alone.
• With a hike almost priced, the financial market participants will look closely at the projection materials for a future cue. Despite a recent weakness in some of the economic dockets, the majority of the Fed policymakers have maintained hawkish tone in commentaries. As of now, the market is marginally pricing a third rate hike in 2017.
• Financial market participants would look for hints that the US Federal Reserve is seriously considering the trimming of the $4.5 trillion balance sheet. An absence of that could be a dollar negative.
• The future outlook seems to have become more divergent within the FOMC. So, the numbers of dissenters would be crucial. If more policymakers join the March dissenter Neel Kashkari, it would not bode well for the dollar.

The dollar is currently in a short-term downtrend. The trend, which is in a halt at the moment due to the Fed meeting could resume after FOMC. The dollar index is currently trading at 97.03, flat for the day.