On Tuesday (November 1) subsession, the rush high fell back, temporarily traded at 111.39, down 0.18%.
Analysts at Rabobank noted that would be higher than currently expected due to the apparent prioritization of price stability over full employment.
The FOMC is expected to raise the target range for the federal funds rate by 75 basis points this week to 3.75 percent to 4.00 percent and does not expect the Fed to pivot until 2024.
But given that another 75 basis point increase would bring the upper end of the target range to 4.00%, and the FOMC had projected a terminal rate of 4.6% in September, they are likely to slow the pace of rate increases at the December meeting.
Analysts expect the Fed to raise rates by 50 basis points in December, followed by 25 basis points in both February and March, which would take the upper end of the target range to 5.00 per cent.
The Fed will leave interest rates unchanged for the rest of 2023.
The dollar index (DXY) dissipated its upward momentum around 111.50 early Tuesday after three straight days of gains.
In this case, the dollar versus six major indicators reflected the weakness in US Treasury yields as the market hesitated ahead of key announcements as well as US jobs data.
