Forex Today: Will the Fed add to the euphoria?

The Greenback was set for its biggest one-day gain since 2020, boosted by Trump's victory and the rising chances of a "Red Sweep." Up next is the Fed meeting, where a 25-basis-point rate cut is widely expected by investors. Following Trump's win, the market will closely examine the Fed's stance on any additional rate cuts.

Here is what you need to know on Thursday, November 7:

The US Dollar Index (DXY) rose to four-month tops north of the 105.00 hurdle on the back of Trump's win and higher US yields. The Fed's interest rate decision will be at the centre of the debate, seconded by weekly Initial Jobless Claims and Wholesale Inventories.

EUR/USD made a sharp U-turn and plummeted to the 1.0680 region in response to the robust performance of the Greenback. Germany's Balance of Trade results and Industrial Production are due, along with the HCOB Construction PMI in Germany and the euro area, as well as Retail Sales in the bloc. In addition, the ECB's Elderson, Buch, Lane, and Schnabel are all due to speak.

GBP/USD followed its risk peers and broke below the 1.2900 support following the strong resurgence of the bid bias in the US Dollar. The release of the Halifax House Prices Index will precede the BoE's interest rate decision and the speech by Governor Bailey.

USD/JPY advanced to levels last seen in late July past the 154.00 barrier on the back of the intense bid bias in the Greenback after Trump wan the US election. Average Cash Earnings, and weekly Foreign Bond Investment figures are due.

AUD/USD plummeted to the vicinity of the 0.6500 support, where some contention appears to have turned up so far. Australia's Balance of Trade, Private House Approvals, and Building Permits are all expected Down Under.

Prices of WTI managed to regain some balance following the early breakdown of the key $70.00 mark per barrel amidst a stronger dollar and the weekly build of US crude oil inventories, as per the EIA's report.

Prices of Gold retreated to three-week lows near $2,650 per ounce troy in response to the firmer dollar and higher US yields across the board. By the same token, Silver Prices sold off sharply to three-week lows in the sub-$31.00 region.