• The US Dollar Index faces downward pressure ahead of the Federal Reserve's anticipated interest rate cut on Wednesday.
• The CME FedWatch Tool indicates the likelihood of a 50 basis point cut has risen to 63.0%.
• JP Morgan CEO Jamie Dimon commented that a Fed interest rate cut would be "not earth-shattering."

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against other six major currencies, retraces its recent gains from the previous session. The DXY trades around 100.80 during Asian hours ahead of the Federal Open Market Committee’s (FOMC) monetary policy meeting scheduled for Wednesday.

This downside of the US Dollar could be attributed to the improved risk sentiment amid the increasing likelihood of the US Federal Reserve (Fed) announcing a bumper 50 basis point rate cut at September’s meeting scheduled later in the North American session.

The CME FedWatch Tool indicates that markets are assigning a 37.0% probability to a 25-basis-point rate cut, while the likelihood of a 50 basis points cut has risen to 63.0%, up from 62.0% just the previous day.