Forex Today: The Fed is largely expected to stand pat

The US Dollar (USD) extended further its march north on Tuesday, reaching new multi-week highs on the back of rising scepticism surrounding the trade scenario, while investors geared up for the imminent interest rate decision by the Federal Reserve and, later in the week, the publication of the crucial Nonfarm Payrolls.

Here's what to watch on Wednesday, July 30:

The US Dollar Index (DXY) climbed to five-week highs north of the key 99.00 hurdle despite declining US yields and amid a marked selling bias in the risk complex. The Fed’s interest rate decision will take centre stage, seconded by the ADP Employment Report, the advanced Q2 GDP Growth Rate, Pending Home Sales, the weekly MBA Mortgage Applications, and the EIA’s weekly report on US crude oil stockpiles.

EUR/USD tumbled to multi-week troughs and came within shouting distance of the 1.1500 support in response to the stronger US Dollar. Germany’s Retail Sales and the preliminary Q2 GDP Growth Rate are due, followed by the final Consumer Sentiment in the Euroland as well as the flash Q2 GDP Growth Rate.

GBP/USD retreated to levels last traded in mid-May, just pips ahead of the 1.3300 support, down for the fourth consecutive day. Next on tap on the UK calendar will be the Nationwide House Price Index and the final S&P Global Manufacturing PMI on August 1.

USD/JPY seems to have met some decent resistance around 148.80 amid the ongoing multi-day positive streak. Next on tap in Japan will be the BoJ’s interest rate decision, Industrial Production, Retail Sales, and Foreign Bond Investment figures, all due on July 31 .

AUD/USD fell to seven-day lows, breaking below the key 0.6500 support on the back of the persistent advance in the US Dollar. The release of the Inflation Rate will be at the centre of the debate in Oz.

Crude oil prices added to Monday’s optimism and rose to two-week tops past the $69.00 mark per barrel of WTI amid further relief on the trade front and prospects of further US sanctions against Russia.

Gold managed to regain some balance and rise modestly on Tuesday, revisiting the $3,330 region per troy ounce following US-China trade discussions and amid steady caution prior to the Fed gathering on Wednesday. Silver prices kept the choppy trade, down marginally for the day and retesting the $38.00 zone per ounce.