Forex today: the weakness of the Japanese yen Canadian dollars and gold.
Economic and technical report to the end
This week 21 July 2023
The Japanese Yen remained under strong selling pressure on Friday on reports claiming that the BoJ will not make any changes to its YCC yield curve control strategy next week. The US Dollar Index (DXY) continues to extend its rally after Thursday's strong rebound amid a cautious attitude in the market. Canadian retail sales for June will be the only data on the economic docket ahead of the weekend.
Citing five sources familiar with the matter, Reuters reported on Friday that the BoJ is leaning towards maintaining its YCC yield curve control strategy at next week's policy meeting. With the initial reaction to this news, the USD/JPY pair gained bullish momentum and rose to a 10-day high above 141.50. Meanwhile, data from Japan earlier showed that the national CPI rose to 3.3% yoy in June from 3.2% in May. This reading came in below market expectations of 3.5%. Reflecting broadly Japanese yen weakness, EUR/JPY was last seen trading up more than 1% on the day at 157.55 and GBP/JPY was up 1.1% at 182.25.
The EUR/USD pair lost nearly 100 pips on Thursday and posted its weakest level in more than a week below 1.1120. Early on Friday, the pair is still struggling to rebound and is fluctuating inside a narrow channel above 1.2100.
The GBP/USD pair closed for the fifth consecutive day in negative territory on Thursday and the pair has already fallen around 2% this week. The United Kingdom's Office for National Statistics reported on Friday that retail sales rose 0.7% month-on-month in June, well above market expectations for a 0.2% increase. At the same time, UK Finance Minister Jeremy Hunt said that they will start to see results if they stick to their plan to halve inflation. The GBP/USD pair showed no reaction to these comments and was last seen trading slightly lower on the day around the 1.2850 region.
Gold : Under pressure from rising US Treasury yields, gold prices lost upward momentum and closed in the red on Thursday. Early on Friday, XAU/USD remains under bearish pressure and continues to decline towards the $1960 region.
Bitcoin : surged above the $30,000 region on Thursday but failed to post a daily close there. Early Friday, the BTC/USD pair is trading flat on the day around the $29,800 region.
This was a quick summary of the most important events in the forex market for this week.
Khaled ali
Khaled Ali, from egypt ,the curious mind behind Quill. While AI plays a significant role in the insights we uncover, I believe the human touch is what truly brings information to life