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Forex Today – Asian Session: The Dollar loses strength after the Fed's decision

The dollar retreated from Tuesday's advance amid falling US yields across the curve, all after the Fed left its interest rates unchanged, as expected, and Chairman Powell ruled out a raising interest rates as the Fed's next move.

Here's what you need to know on Thursday, May 2:

The USD Index (DXY) fell below the 106.00 support following the FOMC meeting, along with the pullback in US yields. On May 2, the Initial weekly unemployment benefit requests will be published, supported by the results of the trade balance and factory orders.

The EUR/USD pair reversed Tuesday's decline and returned to above 1.0700 in response to the sharp sell-off in the Dollar following the FOMC meeting. The final HCOB manufacturing PMI in both Germany and the Eurozone will be the focus of the national agenda on May 2.

The GBP/USD pair regained the 1.2500 level following the sharp decline in the US Dollar after the Fed matched the consensus and kept rates unchanged. On May 2, no data will be published in the British agenda.

USD/JPY partially pared Tuesday's strong performance due to the renewed strong selling bias in the Dollar and the decline in US yields across the curve. The BoJ will publish its Minutes on May 2, which will be followed by weekly foreign bond investment figures and the consumer confidence indicator.

The AUD/USD pair managed to rally strongly, recovering the 0.6500 barrier and surpassing it after the weak tone of the Dollar. In Australia, the trade balance and preliminary construction permits will be published on May 2.

WTI prices continued to decline and fell to multi-week lows below $79 per barrel.

Gold prices rose and surpassed the level of $2,300 per troy ounce, following the renewed weakness of the Dollar and the decline in yields. For the same reason, Silver regained some bullish traction and pared some of the recent intense decline.

Source: Fx Street

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