(MENAFN- Investor Ideas) The dollar held steady despite strong volatility in the previous session, hovering above the key support level of 105 points. The currency reacted as the Federal Reserve maintained interest rates unchanged and retreated against a basket of currencies late yesterday and could remain under some pressure. The Federal Reserve announced a significant reduction in its quantitative tightening program, cutting the amount of Treasuries going out of its balance sheet from $60 billion to $25 billion starting next month. Market participants now turn their attention to the upcoming US monthly jobs report on Friday to assess the labor market's strength which could affect the interest rates outlook. The Federal Reserve remains attentive to the health of the job market as mentioned by Jerome Powell and could take steps to soften its policy in case of weakness. Treasury yields could remain under pressure as well and could see some volatility upon the release of job market data. Yields in 2 and 10-year treasuries have also retreated after the Federal Reserve's decision yesterday, with the 2-year yields sliding below 5%.
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