The US dollar weakened across the board, sliding following a dip in Treasury yield - 10-year yields fell for the fourth straight session, trending down toward 4.40%, seeing both GBPUSD and EURUSD test key resistance levels.
The yen strengthened modestly, rallying from its earlier lows after Japan’s upper-house election results sparked political uncertainty around currencies.
*Daily move - against G10 rates at 7:00 am, 22.07.25
** Indicative rates - interbank rates at 7:00 am, 22.07.25
Today, we've got a quiet data session ahead but we could see some USD volatility, given Powell and Bowman are set to speak. Market participants will be watching closely for any clues on the rate path into September and beyond – especially after last week’s CPI/PPI miss and the pullback in yields. USD is softer into the day after both GBPUSD and EURUSD hit key resistance levels yesterday. Any dovish tone from Powell could see these resistance levels taken out.
The EUR remains firm ahead of next week’s ECB meeting – no fresh data today but tariff chatter remains a background risk. GBP continues to hold key support levels with no domestic catalysts today, so movement will likely come via USD legs. JPY and CHF could benefit if we see a dovish Fed-induced risk-off move.
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