After a negative start to the week, the Dollar managed to regain ground and DXY once again surpassed the 106.00 barrier supported by data and cautious trading awaiting the Fed's interest rate decision on Wednesday.
Here's what you need to know on Wednesday, May 1:
The US dollar rebounded strongly amid lingering caution ahead of Wednesday's impending FOMC event. Weekly mortgage applications will be released first on May 1, followed by ADP employment change, final S&P Global manufacturing PMI, construction spending, and ISM manufacturing PMI. Finally, the FOMC's decision on interest rates will be known before Chairman Powell's press conference.
EUR/USD came under strong bearish pressure and retreated to multi-day lows near 1.0670. The European economic calendar will remain closed on May 1.
GBP/USD saw its recent bullish trend cut and hit lows again near the 1.2500 area due to the strength of the Dollar. Across the English Channel, national housing prices will be released on May 1, ahead of S&P Global's final manufacturing PMI.
USD/JPY regained buying interest and quickly broke through the 157.00 barrier as traders appear to have put Monday's alleged intervention in the currency market behind them. There are no posts scheduled on the Japanese agenda for May 1.
AUD/USD plunged to multi-day lows south of 0.6500 in response to the rally in the Dollar and broad-based weakness in the commodities complex. In Oz, the Ai Group industrial index and the final manufacturing PMI of Judo banks will be published on May 1.
WTI prices added to the recent negative price action and broke below $81.00 amid the firmness of the Dollar and the prospects of a tighter Fed for longer.
The increase in yields in the US and the intense rebound of the Dollar led to the second consecutive daily decline in Gold prices, which once again visited the area of $2,290 per troy ounce. Silver, along the same lines, plummeted almost 3% and touched $26.00 again for the first time since early April.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
