Forex Today: Investors’ attention now turns to the US economic health

The dollar regained its composure and bounced from multi-month lows as traders continued to weigh the Fed’s 50 basis point interest rate cut in a rather volatile session on Wednesday.

Here’s what you need to know on Thursday, September 19:

The US Dollar Index (DXY) weakened to the 100.20 region, only to bounce back later and reclaim the 101.00 hurdle and beyond following the FOMC event. The usual weekly initial jobless claims will be released on September 19, followed by the Philly Fed manufacturing index, CB leading index and existing home sales.

EUR/USD moderated the initial rally to multi-week highs in the 1.1190 area, coming under pressure and briefly piercing the 1.1100 support late on Wednesday. Current account results in the broader euro bloc are due for release on September 19, along with a speech by ECB’s Schnabel.

GBP/USD advanced to yearly highs near the 1.3300 barrier on the back of bearish bias in the US Dollar and mixed UK CPI data. The BoE meets on September 19 and is expected to keep its policy rate unchanged.

USD/JPY resumed its downtrend and partially moderated Tuesday’s pullback following the Fed meeting. Weekly foreign bond investment figures will be released on September 19.

The AUD/USD pair failed to sustain a move towards the 0.6800 area, giving back gains and eventually retreating to the 0.6750 area. The Australian labour market report will be in focus early on September 19.

WTI prices added to losses recorded the previous day despite a weak dollar and renewed geopolitical turmoil in the Middle East.

Gold prices rose to record highs around $2,600 per troy ounce, although prices lost momentum and eventually ended with sharp losses. Silver prices, on the other hand, fell to four-day lows in the region of less than $30.00 per ounce.