Forex Today: The Fed is anticipated to keep rates unchanged

The US Dollar kept its offered stance well in place for yet another day on Tuesday amid the omnipresent tariff uncertainty and the usual cautious trade ahead of the Fed's interest rate decision on Wednesday.

Here is what you need to know on Wednesday, May 7:

The US Dollar Index (DXY) traded on the defensive for the third day in a row, this time receding to multi-day troughs around 99.30. The FOMC meeting will be the salient event, followed by weekly MBA Mortgage Applications, and the EIA's crude oil inventories report.

EUR/USD extended its recovery to the 1.1370 region, up for the third straight day on the back of the intense retracement in the Greenback. Germany's Factory Orders are due, along the HCOB Construction PMI in both Germany and the euro area.

GBP/USD rose markedly and managed to briefly trespass the 1.3400 hurdle on Tuesday. Next on tap across the Channel will be the the S&P Global Construction PMI.

USD/JPY retreated to multi-day lows, revisiting the 142.30 zone on the back of further selling pressure around the US Dollar. The final Jibun Bank Services PMI will be published.

Extra gains saw AUD/USD trade just pips away from the key barrier at 0.6500 the figure, hitting new yearly peaks at the same time. further and faltered just ahead of the key 0.6500 barrier, building on Friday's advance. Next in Oz will be the Ai Group Industry Index.

WTI prices made a U-turn and reversed part of the recent steep decline, managing to retest the boundaries of the key $60.00 mark per barrel.

A persistent safe-haven demand coupled with renewed geopolitical jitters and trade concerns boosted Gold prices, sending the precious metal to new two-week highs north of the $3,400 mark per troy ounce. Silver prices rallied to multi-day highs, reclaiming the area beyond the $33.00 mark per ounce.