Forex Today: All eyes are on the Bank of England

The US Dollar edged higher as markets digested the Federal Reserve's decision to leave interest rates unchanged on Wednesday. Adding to the Greenback's modest strength were renewed hopes of a US-China trade deal materialising sooner rather than later.

Here is what you need to know on Thursday, May 8:

The US Dollar Index (DXY) printed marked gains and approached the key 100.00 barrier on Wednesday, managing to leave behind part of the recent multi-day bearish leg. The usual Initial Jobless Claims and Wholesale Inventories are due.

EUR/USD faced some renewed downside pressure and retested the vicinity of 1.1300, where it encountered decent contention. German Balance of Trade data and Industrial Production will round out the European weekly docket.

GBP/USD partially trimmed the recent advance to the 1.3400 zone, briefly revisiting the 1.3300 area in response to strong gains in the US Dollar. The BoE is widely anticipated to reduce its policy rate by 25 basis points.

USD/JPY reversed course after three consecutive daily retracements, advancing markedly to the boundaries of the key 144.00 hurdle. The BoJ meeting Minutes takes centre stage on the Japanese calendar.

AUD/USD plummeted to the 0.6420 zone, or three-day lows, on the back of the intense buying interest in the Greenback. Next on tap in Australia will be the Westpac's Consumer Confidence gauge, followed by the Business Confidence tracked by NAB, both expected on May 13.

Prices of the American benchmark WTI resumed their downtrend on Wednesday, slipping back below the $58.00 area despite climbing just above the key $60.00 mark earlier in the day.

Gold prices remained on the back foot below the $3,400 mark per troy ounce on Wednesday following mitigating concerns on the US-China trade front and a better tone around the Greenback. Silver prices followed suit and dropped markedly to the $32.50 region following an auspicious first half of the week.