Forex Today: Markets remain focused on Trump's policies

The US Dollar remained on the defensive, adding to Monday's pullback as further market chatter around US tariffs failed to underpin the initial bullish bias in the currency.

Here is what you need to know on Wednesday, January 22:

The US Dollar Index (DXY) retreated marginally and closed around the 107.60 zone following mixed US yields and rising uncertainty around Trump's trade policies. The usual weekly Mortgage Applications by MBA are due along with the CB Leading Index, and the API report on US crude oil supplies.

EUR/USD extended its advance following extra USD selling, revisiting the area beyond the 1.0400 barrier on quite a convincing mood. The ECB's C. Lagarde will speak on Wednesday.

GBP/USD remained well bid above 1.2300 the figure on the back of the persistent downward bias in the Greenback. The UK's Public Sector Net Borrowing figures will be on the docket.

USD/JPY traded in a volatile fashion around the 155.50 zone as investors remained cautious in light of the upcoming BoJ meeting. Japan's Balance of Trade is next on tap on January 23 followed by weekly Foreign Bond Investment.

Contrasting with its risky peers, AUD/USD charted humble losses on Tuesday, partially reversing an auspicious start to the week. The Westpac Leading Index is next on tap on the Australian calendar.

WTI prices declined further and approached the $75.00 mark per barrel on the back of the stronger Dollar and investors' assessment of Trump's tariffs.

Gold prices rose to two-month peaks past the $2,740 mark per ounce troy in response to rising uncertainty surrounding potential announcements by President Trump. Silver prices added to the positive start to the week and traded closer to the $31.00 mark per ounce.