Forex Today: Attention remains on US election prior to the FOMC event

The Greenback remained largely on the defensive on Tuesday, retreating to three-week lows amidst heightened expectation ahead of the outcome of the US election and the upcoming Fed meeting.

Here is what you need to know on Wednesday, November 6:

The US Dollar Index (DXY) extended its bearish move, revisiting the proximity of 103.40 despite a decent rebound in US yields across the curve. The usual weekly Mortgage Applications are due, followed by the EIA’s weekly report on US crude oil inventories.

Extra gains lifted EUR/USD to fresh four-week tops near 1.0940, a region also coincident with the interim 100-day SMA. The final HCOB Services PMI in Germany and the euro area are due along with Germany’s Factory Orders and the EMU’s Producer Prices. In addition, the ECB’s Buch and De Guindos are due to speak.

GBP/USD reclaimed the 1.3000 barrier and beyond, up for the fourth session in a row and reaching new multi-day highs. The S&P Construction PMI will be published.

USD/JPY came under further downside pressure and receded to the 151.40-151.30 band, or two-week lows. Next on tap comes the BoJ Minutes and the final Jibun Bank Services PMI.

AUD/USD advanced past the 0.6600 hurdle, surpassing the key 200-day SMA and hitting new two-week peaks on the back of the weaker US Dollar. The RBA’s Chart Pack will be unveiled.

WTI prices advanced to three-week highs north of the $72.00 mark per barrel before giving away all those gains and remain slightly negative for the day, as traders kept assessing the recent decision by the OPEC+ to postpone its planned oil output increase in December.

Gold prices added to Monday’s slight gains and retested the $2,750 region per ounce troy on the back of steady caution ahead of the US election. Silver prices followed suit and rose to two-day highs near the $33.00 mark per ounce.