The Federal Reserve is laying the groundwork to reduce the scope of US dollar futures. The drop in US bond interest rates weakened the dollar and increased the euro. EURUSD is biased to the downside, although a break above 0.9900 could boost EURUSD. USD was lower as traders prepared for the weekend after a volatile exchange rate that saw EURUSD initially touch its intraday lows of around 0.970 . News that the Federal Reserve (Fed) is slowing rates lifted the euro off the bottom and the EURUSD back above 0.9800. Accordingly, EURUSD is at 0.9856, up 0.17%. Fed tips to adjust interest rates In the New York session, the US dollar was hit by news that Federal Reserve policymakers will discuss raising the Federal Funds Rate (FFR) at their November meeting. Euro buyers benefited from the news as EURUSD returned to 0.9800. San Francisco Fed President Mary Daly later acknowledged what the article meant, commenting that while a rate hike is necessary and supports a 75 basis point increase by November, she added that it would not be a 75 basis point increase „forever.” His comments were echoed by St Louis Fed President James Bullard, who voted in 2022 on the Federal Open Market Committee (FOMC). Bullard noted that the central bank has moved base rates „toward the higher end of the interest rate floor,” adding that „Once you get to the 'right level,'” it may just need some adjustments based on incoming data. Investors should remember that the United States is struggling with annual inflation of more than 8 percent, while September’s consumer price index (CPI) jumped 6.6 percent year over year. US bond yields fall on Fed pivot speculation, supported by EUR. As a result, US Treasuries rose, a headwind to US Treasury yields, which have fallen from around weekly highs, weighing on the US dollar and supporting the euro. The yield on the 10-year US Treasury pared earlier gains and was around .218 percent, from a 2007 high of .338 percent. Japanese authorities intervene in foreign exchange markets Meanwhile, the US Federal Reserve, the Bank of Japan (BoJ) and the Japanese Ministry of Finance (MF) intervened in foreign exchange markets increasing the sale and market of US dollars. yen, increasing market volatility and weakening the dollar. The EURUSD pair plunged to its daily low before rising sharply to the daily high of 0.9869 at . Next week, the European macroeconomic calendar includes the French and German Flash Services PMI, the German IFO Business Climate and the European Central Bank (ECB). . ) monetary policy decision, in which ECB interest rates are expected to increase by 75 basis points. The US economic paper includes the Flash Manufacturing PMI, CB Consumer Confidence, third-quarter gross domestic product (GDP) and the Fed’s favorite inflation measure, core PCE. EURUSD Price Forecast The EURUSD pair remains neutral to the downside despite a pullback from 0.9800 and the 20-day exponential moving average (EMA). Friday’s rally stalled due to the low liquidity situation, as did the upper trend line of the daily chart’s descending channel and the 50-day EMA at the confluence of 0.9903. The Relative Strength Index (RSI) increased after crossing the median line, indicating a likely bullish correction, but EURUSD needs to reset to 0.9903 to set the stage for a retest of the pair. On the other hand, if EURUSD is at 0.9900, it will affect the common currency, causing EURUSD to plunge to the 20-day EMA at 0.9773, which, once released, could pave the way for the intraday low of October 13. 0.9631. and a YTD low of 0.9535.

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