Euro futures rally from 18-month lows on dovish Fed remarks.

Euro futures reversed early weakness to finish higher on Tuesday, bouncing from an 18-month low near 1.1150 to close around 1.1200. The rally was sparked by a softening U.S. dollar, following dovish remarks from New York Fed President John Williams suggesting a less aggressive stance on 2027 rate hikes. Meanwhile, FX volatility continues to ease, with the CVOL index extending its slow decline from the October 1 peak. Despite the daily bounce, fund positioning remains heavily bearish, as speculators increased their net short positions to the highest level since February 2020.