Forex Today: Trade, Fed's independence remains in the driver's seat

The Greenback accelerated its decline on Tuesday, slipping back to two-week lows near 97.50 amid an improved sentiment around the risk complex despite unabated uncertainty on the trade front and further fireworks surrounding the Trump-Powell crisis.

Here's what to watch on Wednesday, July 23:

The US Dollar Index (DXY) tumbled to two-week troughs around the 97.30 zone on Tuesday amid shrinking US yields across the curve and persistent trade jitters. The MBA Mortgage Applications are due, seconded by Existing Home Sales and the EIA's weekly report on US crude oil stockpiles.

EUR/USD advanced for the third consecutive day, hitting at the same time new two-week highs well past 1.1700 the figure following the intense move lower in the Greenback. The preliminary Consumer Confidence in the euro area will take centre stage.

GBP/USD added to Monday's optimism and broke above the 1.3500 hurdle in response to the steady decline in the US Dollar. Next on tap across the Channel will be the key advanced S&P Global Manufacturing and Services PMIs on July 24.

Extra selling pressure sent USD/JPY to fresh two-week lows near 146.30, adding to Monday's pessimism amid further retracement in the Greenback and US yields. The BoJ's Uchida is due to speak.

AUD/USD maintained its rebound in place and approached the 0.6560 region on Tuesday. The Westpac Leading Index will be the sole release Down Under.

The continuation of the downward bias in crude oil prices sent the barrel of WTI below the $65.00 mark per barrel as traders remained wary of rising trade concerns ahead of the August 1 deadline.

Gold prices rose further north of the $3,400 mark per troy ounce, hitting new five-week highs amid trade jitters, a weaker US Dollar, and diminishing US yields. Silver prices advanced to the $39.20 region per ounce for the first time since September 2011.