Forex Today: It is all about “Liberation Day”

The Greenback treaded water just above the 104.00 mark amid omnipresent trade concerns and investors’ steady caution prior to the dubbed “Liberation Day”.

Here is what you need to know on Wednesday, April 2:

The US Dollar Index (DXY) alternated gains with losses in the low-104.00s against the backdrop of a generalised weakness in US yields. President Trump’s announcement of reciprocal tariffs will be the salient event, seconded by Factory Orders, the EIA’s weekly report on US crude oil inventories, and the speech by the Fed’s Kugler.

EUR/USD accelerated losses towards the end of the NA session, revisiting the 1.0780 zone, down for the second day in a row. The speeches by the ECB’s Lane and Schnabel will gather importance in the euro docket.

GBP/USD charted an irresolute day near 1.2920 amid the flattish mood in the Greenback. Next on tap across the Channel will be the final S&P Global Services PMI on April 3.

USD/JPY quickly left behind Monday’s recovery attempt and put the 149.00 support to the test once again. The next event in the Japanese calendar will be the weekly Foreign Bond Investment and the final Jibun Bank Services PMI on April 3.

AUD/USD regained balance, set aside two daily drops in a row and traded close to the key 0.6300 barrier. The Ai Group survey is due, seconded by Building Permits, Private House Approvals and the speech by the RBA’s Kent.

WTI prices corrected lower after hitting new highs just north of the $72.00 mark per barrel amid steady tariff concerns.

Gold prices receded marginally after hitting an all-time high near the $3,150 mark per troy ounce backed by rising fears surrounding tariffs and concerns over the US economy. Silver prices fell for the third consecutive session, hovering around multi-day lows near $33.50 per ounce.