Forex Today: The FOMC Minutes and UK inflation in the spotlight

The US Dollar (USD) had a positive day on Tuesday, as traders remained cautious ahead of the release of the FOMC Minutes on Wednesday and the pivotal Jackson Hole Symposium later this week. Furthermore, geopolitics has returned to the forefront of price action drivers.

Here's what to watch on Wednesday, August 20:

The US Dollar Index (DXY) clocked acceptable gains around 98.30 in a context of a generalised decline in US yields. The publication of the FOMC Minutes will be the salient event, seconded by the weekly MBA Mortgage Applications and the weekly report on US crude oil supplies by the EIA. In addition, the Fed’s Waller and Bostic are due to speak.

EUR/USD retreated modestly, adding to Monday’s downtick, always below the 1.1700 mark. The final Inflation Rate in the euro area will be released alongside the flash Q2 Labour Cost Index.

GBP/USD retreated to multi-day lows after breaching below the 1.3500 support. The critical Inflation Rate takes centre stage across the Channel.

USD/JPY faded Monday’s advance and revisited the mid-147.00s following earlier tops north of the 148.00 mark. Next in Japan will be the Balance of Trade results and Machinery Orders.

AUD/USD weakened further and reached three-week lows near the 0.6450 zone. The Consumer Inflation Expectations are due, seconded by the speeches from the RBA’s Connolly and McPhee.

Crude oil prices deepened their bearish leg, adding to Monday’s decline below the $62.00 mark per barrel of the American WTI as geopolitical tensions continued to mitigate.

Gold posted marked losses and slipped back to the $3,315 mark per troy ounce amid gains in the Greenback and declining US yields. Silver prices, in the same direction, dropped sharply to multi-day lows near the $37.00 mark peer ounce.