On Tuesday (November 1) subsession, the rush high fell back, temporarily traded at 111.39, down 0.18%.
The dollar index rose sharply in the late overnight session on expectations of further substantial rate hikes at this week’s interest rate meeting and a recovery in demand for risk aversion.
Bank of America Global Research said on Wednesday that it expects the Federal Reserve to raise interest rates by 75 basis points at its next meeting.
But the focus of the meeting was not on decisions, but on guidance on future policy and expectations for December and beyond.
Powell is expected to leave room for a dovish turn in December.
However, Mr Powell is likely to continue to emphasise reliance on data.
Bank of America Global Research said the Fed‘s monetary policy decision on Tuesday will support the dollar in the near term, but is unlikely to have a significant impact on bond yields.
Short-term resistance in the USD index is at 111.85–111.90, while short-term important resistance is at 112.25–112.30.
