Forex Today: Markets' attention will be on the BoE meeting

The US Dollar (USD) resumed its downward trend and tumbled to multi-day lows on Wednesday, as investors remained watchful of President Trump's plans for Chief Powell's replacement as well as any developments on the trade front ahead of the upcoming deadline. On the central bank's galaxy, both the Bank of England and Banxico are expected to lower their policy rates by 25 basis points.

Here's what to watch on Thursday, August 7:

The US Dollar Index (DXY) reversed two consecutive daily pullbacks and eased to the 98.10 zone, or multi-day troughs, challenging its interim 55-day SMA at the same time. The weekly Initial Jobless Claims are due, seconded by Wholesale Inventories, flash Q2 Unit Labor Costs, and the New York Fed's Consumer Inflation Expectations. In addition, the Fed's Bostic and Musalem are due to speak.

EUR/USD rose to weekly peaks well north of the 1.1600 barrier in response to the pickup in the selling pressure on the Greenback. Germany's Balance of Trade results will be in the spotlight.

GBP/USD extended its march north, reaching five-day tops around 1.3370 ahead of the BoE's interest rate decision. The Halifax House Prices Index is next on tap, followed by the BoE's DMP survey.

USD/JPY faded Tuesday's bullish attempt and refocused on the downside amid the marked pullback in the US Dollar. The weekly Foreign Bond Investment figures will be released, followed by the advanced Coincident Index and Leading Economic Index.

AUD/USD traded in an inconclusive fashion south of the 0.6500 hurdle, adding to Monday's vacillating tone. The Balance of Trade results will be published on the Australian docket, ahead of the final Building Permits and Private House Approvals readings. Additionally, the RBA's Connolly will speak.

Following Trump's threats to India and the deadline for Russia, WTI prices retreated for the fifth consecutive day on Wednesday, breaking below the $64.00 mark per barrel for the first time since early June.

Gold left behind a multi-day positive streak and approached the $3,360 mark per troy ounce on the back of rising US yields and speculation surrounding Trump's candidates to succeed Chief Powell. Silver prices alternated gains with losses just below the $38.00 mark per ounce.