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BoJ intervened to support the yen, putting additional pressure on the American currency.
Forex
USD weakness forced a pullback but that apparently wasn't enough for Japanese policymakers, with a move that looks interventi.
Pound Sterling Price News and Forecast: GBP/USD surges on BoE hawkish hold, Yen intervention crushes USD
AUD/USD heads into the July close locked in a well-defined three-week range just beneath major resistance, leaving the pair at a pivotal technical inflection point. Buyers continue to pressure the upper boundary of the range while sellers have been unable to force a meaningful rejection, underscoring the constructive nature of the monthly recovery without yet confirming a breakout.
MUFG warned that Sterling needed stronger September BoE hike conviction to advance, but Thursday's guidance left markets with little reason to bring tightening forward. The Euro to Pound exchange rate (EUR/GBP) traded around 0.8574 on Thursday afternoon after the Bank of England held interest rates at 3.75%, with Sterling failing to.
EUR/USD's break of 1.1499 support turned resistance argue that fall from 1.2081 might have completed as a three wave correction at 1.1323. Intraday bias is back on the upside for 1.1621 cluster resistance (38.2% retracement of 1.2081 to 1.1323 at 1.1613).
EUR/JPY's accelerated decline suggests that the corrective pattern from 187.93 has finally started the third leg. Deeper fall could be seen to 180.78 support.
GBP/JPY's decline from 219.56 accelerated lower today, and focus is now on 212.26 support. Strong rebound from there will keep the up trend from 184.35 intact.
USD/JPY's steep decline today suggests that a medium term top is probably formed at 163.97 already. Immediate focus is now on rising channel floor (now at 158.74).
Today's sharp fall in USD/JPY has shifted attention from the Bank of Japan meeting itself to a more immediate question: did Japanese authorities take advantage of the perfect market conditions to intervene?
Gold: FOMC repricing caps CTA upside – TD Securities
Japanese Yen surges on suspected intervention, EUR/JPY tumbles 400 pips in minutes
The gold market jumped immediately on Thursday in reaction to the FOMC meeting on Wednesday, as the Fed held. That being said, we are still in the same consolidation.
Breaking: Japanese Yen surges on suspected intervention, USD/JPY plunges below 161.00
The gold and silver outlook steadied after the Federal Reserve held rates in July, yet a firm dollar and rising Treasury yields keep the pressure on.
Silver markets have seen a bit of choppy behavior on Thursday, as we continue to see a lot of noise in the interest rate markets, as well as the US dollar. Despite that, we are basically where we have been for weeks.
Gold: Central bank demand seen easing after Q2 rebound – BNY
Gold caught between softer US Dollar and rising Treasury yields, US PCE awaited
USD/JPY held near 163.50 on Thursday, with the yen retreating slightly after strengthening in the previous session. The currency had been supported by a broader dollar decline following the Federal Reserve's decision to keep interest rates unchanged.
The US dollar suffered its sharpest fall in the last two weeks following Kevin Warsh's intention to shift the Fed's responsibility for bringing inflation back to the 2% target onto the financial markets. The new Fed Chair emphasised that the rally in Treasury yields is tightening financial conditions and holding back price growth.
