Forex Today: The Dollar gathers pace ahead of FOMC

Following a negative start to the week, the Greenback managed to regain traction and lifted the USD Index (DXY) back above the 106.00 hurdle sustained by data and cautious trade ahead of the Fed’s interest rate decision on Wednesday.

Here is what you need to know on Wednesday, May 1:

The US Dollar bounced strongly amidst persistent prudence ahead of the imminent FOMC event on Wednesday. On May 1, weekly Mortgage Applications are due in the first turn, seconded by the ADP Employment Change, the final S&P Global Manufacturing PMI, Construction Spending and the ISM Manufacturing PMI. Finally, the FOMC interest rate decision is due ahead of Chair Powell’s press conference.

EUR/USD came under strong downside pressure and retreated to multi-day lows near 1.0670. The euro calendar will be closed on May 1.

GBP/USD saw its recent upside trimmed and revisited lows near the 1.2500 region on the back of the stronger Dollar. Across the Channel, Nationwide Housing Prices are expected on May 1 prior to the final S&P Global Manufacturing PMI.

USD/JPY regained buying interest and rapidly surpassed the 157.00 hurdle, as traders seem to have already left behind Monday’s suspected FX intervention. There are no scheduled data releases in the Japanese docket on May 1.

AUD/USD collapsed to multi-day lows south of 0.6500 the figure in response to the pick-up in the Dollar and the generalized weakness in the commodity complex. In Oz, the Ai Group Industry Index and the final Judo Bank Manufacturing PMI are due on May 1.

Prices of WTI added to the recent negative price action and broke below the $81.00 mark amidst the firm Dollar and prospects of a tighter-for-longer Fed.

Higher US yields and the intense bounce in the Greenback sponsored the second consecutive daily decline in Gold prices, which revisited the $2,290 region per troy ounce. Silver, in the same line, plummeted nearly 3% and retested the low $26.00s for the first time since early April.