Forex Today: The Dollar lost its grip after a steady Fed

The Greenback gave away Tuesday’s advance amidst declining US yields across the curve, all after the Fed left its interest rates unchanged, as expected, and Chief Powell ruled out an interest rate hike as the Fed’s next move.

Here is what you need to know on Thursday, May 2:

The USD Index (DXY) tumbled below the 106.00 support in the wake of the FOMC gathering along with the retracement in US yields. On May 2, weekly Initial Jobless Claims are due seconded by Balance of Trade results and Factory Orders.

EUR/USD reversed Tuesday’s pullback and returned beyond 1.0700 the figure in response to the marked sell-off in the Greenback following the FOMC event. The final HCOB Manufacturing PMI in both Germany and the euro area will be in the spotlight in the domestic docket on May 2.

GBP/USD regained the 1.2500 hurdle and above following the strong decline in the US Dollar after the fed matched consensus, leaving its rates unchanged. There will be no data releases on the UK docket on May 2.

USD/JPY partially trimmed Tuesday’s firm performance on the back of the renewed and strong selling bias in the Greenback and diminishing US yields across the curve. The BoJ will publish its Minutes on May 2 followed by weekly Foreign Bond Investment figures and the Consumer Confidence gauge.

AUD/USD managed to stage a sharp comeback, retaking the 0.6500 barrier and beyond following the weak tone in the Greenback. In Australia, the Balance of Trade and preliminary Building Permits are expected on May 2.

Prices of WTI remained on the back foot and dropped to multi-week lows below the $79.00 mark per barrel.

Gold prices edged higher and surpassed the $2,300 mark per troy ounce following renewed weakness in the Dollar and lower yields. By the same token, Silver regained some upside traction and trimmed part of the recent intense drop.