Forex Today: The ECB is widely anticipated to lower its rates

The Greenback resumed its downtrend and faded part of the previous day’s advance on Wednesday, weighed down by trade concerns and disheartening data from the US docket.

Here's what to watch on Thursday, June 5:

The US Dollar Index (DXY) came under renewed selling interest, breaking below the 99.00 contention zone once again on Wednesday. The Balance of Trade results are due, along with Challenger Job Cuts, the final quarterly figures from Unit Labour Costs and Nonfarm Productivity, and the weekly Initial Jobless Claims. In addition, the Fed’s Kugler and Harker are due to speak.

EUR/USD resumed its weekly uptrend, advancing past the 1.1400 barrier on the back of sustained Dollar weakness. The ECB meeting will be the salient event, seconded by Germany’s Factory Orders and the HCOB Construction PMI. In the broader euro area, Producer Prices will be published along with the HCOB Construction PMI.

GBP/USD rose to multi-day highs around the 1.3580 zone on Wednesday, backed by the intense sell-off in the Greenback. The S&P Global Construction PMI is expected on the domestic docket.

Further appreciation of the Japanese Yen prompted USD/JPY to refocus on the downside once again, challenging the 143.00 zone. The key Average Cash Earnings are due alongside weekly readings of Foreign Bond Investment.

AUD/USD rapidly left behind Tuesday’s daily pullback and retested once again its key resistance zone around 0.6500. The Balance of Trade results will be published in Oz.

Prices of WTI reversed two daily advances in a row on Wednesday, approaching the $62.00 mark per barrel following an unexpected increase in gasoline stockpiles and traders’ assessment of the OPEC+ output hike.

Gold prices charted a decent rebound on Wednesday, approaching the $3,400 mark per troy ounce following the soft tone in the US Dollar and renewed trade effervescence. Silver prices followed suit, adding to Tuesday’s pullback and partially fading Monday’s strong advance.