Forex Today: The BoE is seen holding its policy rate

The US Dollar (USD) challenged the area of multi-week troughs before attempting a marked bounce, ending the day with decent gains as investors assessed the interest rate cut by the Federal Reserve.

Here's what to watch on Thursday, September 18:

The US Dollar Index (DXY) confronted the region of multi-week lows near 96.50 on Wednesday, all before staging an acceptable rebound following the Fed’s decision to lower its interest rates. The weekly Initial Jobless Claims will be in the spotlight, alongside the Philly Fed Manufacturing Index, the CB Leading Index, and TIC Flows.

EUR/USD set aside four consecutive daily advances, coming down after hitting yearly peaks near 1.1920 earlier in the session. The EMU’s Current Account results are due, seconded by Construction Output data. In addition, the ECB’s Lagarde, De Guindos and Buch are all due to speak.

GBP/USD traded in an inconclusive fashion around 1.3650, reversing the post-Fed move to 1.3700 and beyond. The BoE is largely anticipated to leave its bank rate unchanged.

USD/JPY flirted with six-week lows near the 146.00 neighbourhood, just to reverse that move afterwards and end the day near the 147.00 hurdle. Machinery Orders will be the only data release on the Japanese docket.

AUD/USD came under renewed selling pressure, trimming part of the recent move to fresh yearly highs just below the 0.6700 barrier. All the attention in Oz will be on the release of the labour market report.

WTI prices left behind three daily advances in a row, briefly breaching below the $64.00 mark per barrel as traders remained focused on supply risks stemming from Russia.

Gold prices eased from recent record highs past $3,700 per troy ounce after the Fed lowered its interest rates as expected. Silver prices sold off to four-day lows, approaching the $41.00 mark per ounce.