Forex Today: The BoJ and the Fed are expected to keep rates unchanged

The Greenback remained under heavy pressure, retreating for the third day in a row and revisiting the area of multi-month troughs amid rising prudence ahead of the FOMC event on Wednesday, tariffs fears and geopolitical jitters.

Here is what you need to know on Wednesday, March 19:

The US Dollar Index (DXY) added to the ongoing leg lower, retesting the 103.20 zone amid deflating US yields and investors’ caution prior to the Fed’s interest rate decision. Other than the Fed, the weekly MBA Mortgage Applications, TIC Flows and the weekly report on US crude oil inventories by the EIA will also be published.

EUR/USD advanced to fresh multi-month highs past 1.0950 in response to the extra weakness in the US Dollar. The final Inflation Rate in the euro area as well as the Labour Cost Index and the Wage Growth are all due. In addition, the ECB’s De Guindos and Elderson are due to speak.

GBP/USD surpassed the 1.3000 milestone for the first time since early November, adding to the promising start to the week. Next on tap on the UK docket will be the labour market report and the BoE’s interest rate decision on March 20.

USD/JPY extended its advance for the third straight day, coming just pips away from the key 150.00 barrier, although receding to the 149.00 area afterwards. The BoJ meeting will steal the show in “The Land of the Rising Sun”, seconded by Balance of Trade results, Machinery Orders, Capacity Utilization and the final Industrial Production figures.

AUD/USD came under pressure soon after revisiting monthly highs around 0.6390, fading two daily advances in a row at the same time. The Westpac Leading Index will be the sole release Down Under.

Prices of the American WTI resumed their downtrend, coming under renewed downside pressure after hitting new multi-day highs north of the $68.00 mark per barrel as traders closely followed geopolitical events while the tariff narrative remained well in place.

Prices of Gold hit an all-time high near the $3,040 mark per troy ounce following renewed tensions in the Middle East, while rising uncertainty around US tariffs also contributed to the rally. Silver prices surpassed the $34.20 mark per ounce for the first time since late October.