USD strengthened against other major currencies in the European session on Wednesday, as investors awaited a policy update from the U.S. Federal Reserve. The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, rose 0.13% to 92.55.

The outcomes of the Fed’s July monetary policy meeting will be announced today at 18:00 GMT, and the Fed's Chairman Jerome Powell will follow with a press conference a half-hour later.

Market participants hope to get hints on the Fed’s outlook for stimulus, given that inflation has been growing steeply in recent months. However, most do not expect that the Fed policymakers will make any changes to the central bank’s accommodative policy stance, given the reassurances from them that the recent rise in prices will be temporary and concerns that rising Delta-variant infections could derail the economic recovery. It is of great interest to investors to know the views of the Fed’s officials on the timing of slowing their $120 billion-a-month in bond purchases.