The U.S. dollar moved lower against some major currencies in early week trading (October 25). Investors are starting to reduce the long position due to a situation. 

It is in light of the uncertainty of the Fed's interest rate outlook. At the time this news was taken down, the Dollar Index (DXY) was in the range of 93.50

In general, that major currency continues the weakness that formed since the end of last week. In the perspective of the major pair, AUD/USD was strengthened by 0.28 percent in the range of 0.7486.

Meanwhile, the NZD/USD rose by 0.21% and traded at 0.7164. The euro also gained an momentum on the weakening of that currency, reflected by the strengthening of the EUR/USD pair.

Tapering Must be Started Soon

In the perspective of the major pair, AUD/USD strengthened by 0.28% in the range of 0.7486. Meanwhile, the NZD/USD rose by 0.21 percent and traded at 0.7164. 

The euro also gained an omentum on the weakening of the Dollar, reflected by the strengthening of the EUR/USD pair in the range of the 1.1664 level. 

The Fed Chairman Jerome Powell said that the tapering program should begin immediately. However, a rate hike in the near future is considered not urgent Because of a reason. 

That is because the Fed still assesses that the surge in inflation that occurred in recent months is only temporary. Reiterating Powell's remarks, U.S. Treasury Secretary Janet Yellen said something. 

She states that the U.S. inflation rate is likely to return to normal in the second half of next year. This view prompted speculation that other countries' central banks could move faster to raise interest rates. 

The Analysts is Still Optimism to Dollar

Moreover, The BoE officials have lately been increasingly 6 voicing the urgency to do rate hikes. Despite the Fed's above interest rate outlook, most economists are sure about a thing. 

They predicted that the U.S. dollar will remain bullish over the medium term. This is because the United States economic recovery and tapering program will make dollar liquidity in the market tighter.

The outlook for the US dollar's movement remains skewed upwards..The Fed members are still watching the inflation outlook and will slowly acknowledge the rising trend.

So, that if the Fed does a rate hike, it could support the dollar's movements. It was stated by Kim Mundy as a commonwealth bank of Australia (CBA) currency analyst, in a note.

The US Economy Release Will be the Next Focus

Furthermore, the investor attention this week will be focused on the release of high-impact America's economic data, namely Durable Goods Orders and the third-quarter GDP data. 

The release of a better-than-expected data will support the American Dollar to recover from the current bearish correction. The USD moved relatively stable against major currencies in Tuesday trading. 

At the time this news was written, the US Dollar Index (DXY) was in the range of 93.86 or strengthened 0.04% from the daily Open level. It shows a sign. 

The US dollar appears to be finding a strong footing in the mid-93s. That is as said by the Westpac analysts said in a note.

Market did a Wait and See Action 

Against the Euro, the USD was seen rebounding from a month low. The euro's weakness against the that major currency began at the opening of the London session yesterday. 

That was as the german business confidence slipped worse than the expected. At the time this news was taken down, the EUR/USD pair was trading in the range of 1.1602.

Markets are waiting and see looking forward to the European Central Bank (ECB) policy meeting, as well as the central banks of Japan (BoJ) and Canada (BoC).

Those which are also scheduled to announce their final policy this week. In addition, there is also the release of the America’s GDP data that can be a catalyst for price drivers.