Forex Today: No changes expected at the BoJ meeting

The US Dollar (USD) rose to new multi-week tops underpinned by firmer results from US fundamentals and the upbeat tone from Chair Powell at his press conference after the Federal Reserve left its interest rates the same, as largely expected.

Here's what to watch on Thursday, July 31:

The US Dollar Index (DXY) rose further and approached the 100.00 zone, or two-month peaks, amid rising yields, solid results from the US docket, and an upbeat tone from Chief Powell. The PCE is due alongside Personal Income/Spending, the Employment Cost Index, the Chicago PMI, Challenger Job Cuts, and the weekly Initial Jobless Claims.

EUR/USD retreated to new multi-week lows, coming closer to the 1.1400 support in response to the continuation of the upside impulse in the Greenback. The Unemployment Rate in the euro area is due, seconded by Germany’s flash Inflation Rate.

GBP/USD revisited the 1.3230 zone for the first time since early May against the backdrop of exacerbated selling pressure on the British pound and the extra advance in the US Dollar. Next on the UK calendar will be the Nationwide House Price Index and the final S&P Global Manufacturing PMI on August 1.

USD/JPY resumed its uptrend and advanced to three-month tops near 149.50, flirting at the same time with its key 200-day SMA. 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 collapsed to five-week lows near 0.6420, where its provisional 100-day SMA sits, always following the strong performance of the Greenback. Retail Sales will be at the centre of the docket, seconded by Building Permits, Private House Approvals, and Import and Export Prices.

Crude oil prices picked up pace and surpassed the key $70.00 mark per barrel of WTI in response to further US-Russia effervescence and persistent trade jitters.

Gold prices resumed their downtrend and approached the $3,270 mark per troy ounce on Wednesday as investors gauged the recent set of strong data releases and prospects of a longer prudent stance from the Federal Reserve. Silver prices added to Tuesday’s pullback and flirted with three-week lows around $37.50 per ounce.