Forex Today: Investors now look at the BoE

The US Dollar (USD) has navigated a positive range on Wednesday, gathering extra pace soon after the Federal Reserve hiked its FFTR by a quarter percentage point, as widely anticipated.

Here is what you need to know on Thursday, September 17:

The US Dollar Index (DXY) has managed to reclaim the psychological 100.00 barrier and beyond, as investors were assessing the Fed’s decision to raise its rates to 3.75%-4.00%. The usual Initial Jobless Claims take centre stage, seconded by Housing Starts, Building Permits, Pending Home Sales and the Philly Fed Manufacturing Index.

EUR/USD has dropped below the 1.1500 contention zone to hit fresh multi-week troughs on the back of the solid performance of the US Dollar post-Fed decision. The final Inflation Rate in the Euroland is due alongside a speech by the ECB’s Lane.

Further Greenback’s strength dragged GBP/USD back below the 1.3400 level for the first time since late July, retreating for the third day in a row. The BoE is expected to keep its bank rate unchanged at its upcoming meeting.

USD/JPY has added to the weekly rebound, advancing to levels just shy of the 156.00 yardstick, or multi-day peaks. The usual weekly Foreign Bond Investment figures are due.

AUD/USD has weakened further, receding to the area of four-week lows after breaching below the 0.7100 support level. Next on tap in Oz will be the release of the preliminary PMIs on September 23.

WTI has faded Tuesday’s strong advance, receding to the $101.00 region on the back of the firmer US Dollar and absence of news on the geopolitical front.

Gold has surrendered its initial gains and charted its third day in a row of losses, receding to the $4,250 zone per troy ounce, or six-week troughs, following the marked uptick in the Greenback and mixed US Treasury yields across the curve.