Forex Today: It is not the Fed’s decision, it is the message

The US Dollar regained balance and rebounded sharply, helped by the modest rebound in US yields and another tariffs story, all ahead of the key FOMC event on Wednesday.

Here is what you need to know on Wednesday, January 29:

The US Dollar Index (DXY) rose to two-day highs just above the 108.00 yardstick following the resumption of a strong buying interest in the Greenback. The FOMC meeting will be the salient event, seconded by weekly Mortgage Applications, Wholesale Inventories, and the advanced Goods Trade Balance prints.

EUR/USD tumbled to two-day lows and threatened to breach the 1.0400 support on the back of the strong bid bias in the Greenback. Germany’s Consumer Confidence tracked by GfK will be released, followed by the ECB’s M3 Money Supply, Loans to Companies and Loans to Households figures.

GBP/USD followed its risk-peers and deflated to weekly lows near the 1.2400 mark following the strong bounce in the US Dollar. The BoE’s A. Bailey is due to speak in an otherwise empty UK docket.

USD/JPY reversed three daily advances in a row, briefly flirting with the key resistance at the 156.00 yardstick. The publication of the BoJ Minutes is next in the Japanese calendar along with the Consumer Confidence gauge.

AUD/USD added to Monday’s deep pullback and clinched multi-day lows near 0.6230. Quarterly Inflation Rate and the RBA’s Monthly CPI Indicator are expected to be key in light of the RBA meeting in February.

WTI managed to advance modestly on the back of crude oil supply disruption in Libya, bouncing off recent lows and regaining the $73.00 mark and beyond per barrel.

Gold prices met some support in the better tone in global equities following Monday’s DeepSeek-led pronounced sell-off, advancing past the $2,760 mark per ounce troy. Silver followed its cousin’s steps, reversing Monday’s decline and bouncing off the sub-$30.00 mark per ounce to clock decent gains.