Short-term trading strategy for euro

According to Investing, the USD has become more stable after somewhat mixed comments from Federal Reserve Chairman Jerome Powell on the interest rate roadmap. The greenback ended the week lower as traders booked some recent profits.

In the past week, the DXY index turned down as US Treasury bond yields continued to rise. The 10-year US Treasury bond interest rate hit 5% this week. In a recent speech, US Federal Reserve Chairman Jerome Powell reiterated that inflation in the US remains high.

According to forecasts released by the US Central Bank last month, the Fed is likely to raise interest rates by 25 basis points again this year. At the next meeting on November 1, the market still expects the Fed to keep interest rates unchanged.