The dollar was unable to maintain the initial optimism and succumbed to further selling pressure amid renewed strength in the Japanese yen and continued caution ahead of Friday's US Non-Farm Payrolls release.
This is what you need to know about Friday, May 3:
The USD Index (DXY) joined the post-FOMC sell-off and navigated the three-week low area around 105.50. An interesting calendar is expected for May 3, with the publication of Non-Farm Payrolls, the unemployment rate, the final S&P Global services PMI and the ISM services PMI.
The EUR/USD pair traded with modest gains in the low 1.0700 zone, amid the dollar's loss of momentum late in the day. The overall Eurozone unemployment rate will not be published until May 3.
GBP/USD alternated gains and losses around 1.2520 after Wednesday's decent advance following the FOMC event. The S&P Global Services PMI will be released on May 3.
USD/JPY flirted with recent highs at levels close to the vicinity of 153.00, always around the constant talk of intervention in the foreign exchange market. On May 3, the usual weekly figures for foreign investment in bonds will be published.
AUD/USD rallied strongly and added to Wednesday's rally, while managing to break above the key 200-day SMA around 0.6512. In Australia, the trade balance and preliminary construction permits will be published on May 2.
WTI prices rebounded from multi-week lows near $78 per barrel, paring most of those losses in the latter part of the American session.
Gold prices faded some of Wednesday's rally and remained on the defensive near $2,300 per troy ounce. Silver reversed an earlier decline to new lows near the $26.00 support, ending the session modestly higher.
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.
