Forex Today: Fed's easing cycle takes centre stage with US NFP

The Greenback could not sustain the initial optimism and succumbed to further selling pressure amidst renewed strength in the Japanese yen and steady prudence ahead of the release of US Nonfarm Payrolls on Friday.

Here is what you need to know on Friday, May 3:

The USD Index (DXY) added to the post-FOMC sell-off and navigated the area of three-week lows around 105.50. An interesting calendar is expected on May 3, with the releases of the Nonfarm Payrolls, Unemployment Rate, the final S&P Global Services PMI and the ISM Services PMI.

EUR/USD traded with humble gains in the low 1.0700s amidst the late loss of momentum in the Greenback. The Unemployment Rate in the broader euro area is only due on May 3.

GBP/USD alternated gains with losses around 1.2520 following Wednesday's decent advance in the wake of the FOMC event. On May 3, the relevant S&P Global Services PMI is due across the Channel.

USD/JPY flirted with recent peaks in levels close to the 153.00 neighbourhood, always around steady FX intervention chatter. The usual weekly Foreign Bond Investment figures are expected on May 3.

AUD/USD rose sharply and added to Wednesday's uptick, managing at the same time to break above the key 200-day SMA around 0.65120. In Australia, the Balance of Trade and preliminary Building Permits are expected on May 2.

WTI prices bounced off multi-week lows near the $78.00 mark per barrel, trimming most of those losses in the latter part of the NA session.

Prices of Gold faded part of Wednesday's uptick and remained on the defensive near the $2,300 mark per troy ounce. Silver reversed an earlier drop to fresh lows near the $26.00 support, eventually ending the session marginally up.