• Australian gold stocks rise as much as 3% in early trade, while the broader benchmark trades up 0.4%

• Sub-index logs the largest intraday pct jump since July 16

• Gold prices rose overnight on hopes of a diplomatic breakthrough between the U.S. and Iran, which could ease energy prices and temper expectations of a hawkish Federal Reserve [GOL/]

• Index leaders Northern Star Resources and Evolution Mining rise 3% and 4.5%, respectively

• YTD, AXGD down 18.7%, including the day's moves, lagging behind a 1.3% gain on the AXJO
(Reporting by Nikita Maria Jino in Bengaluru)

July 22 (Reuters) - Japan's Ministry of Finance has been conspicuously absent regarding the ordering of Bank of Japan FX intervention despite USD/JPY rallying to as high as the 163 handle Tuesday. Barring action Wednesday, a new equilibrium is likely on 163, following those at lower handles beginning from 157 after interventions in late April and early May . Although there has been recent news of Finance Minister Satsuki Katayama and MOF taking a new tack on FX policy and towards the BOJ, there is little evidence this is actually the case. Tokyo pundits suggest the Takaichi administration's policies remain tied to 'Abenomics', which had as its two pillars a weak yen and loose monetary policy. Despite the new Takaichi economic blueprint giving assurances of BOJ independence , it appears that pressure on the central bank to hold off more rate hikes as long as possible hasn't changed. Barring actual FX action to take USD/JPY lower and/or BOJ action on rates, the USD/JPY uptrend in place from the April 22, 2025 low of 139.89 will likely continue, albeit with intermittent retracements. Tokyo players and especially Japanese importers fret USD/JPY will soon test 165, where massive importer option barriers have been placed. Taking out of these barriers will knock out lower level buy-side contracts, forcing this bloc to buy even more U.S. dollars at spot prices .

Related comments , , , , , , also ..

USD/JPY:

(Haruya Ida is a Reuters market analyst. The views expressed are his own. Editing by Ewen Chew)

• Lack of Japan FX intervention allowed USD/JPY to pop higher to 163 handle

• Yesterday saw 162.44 to 163.24 rise, Asia so far today 163.18-22 EBS so far

• Renewed US-Iran hostilities, closing of Red Sea too, higher US rates factors

• Wall St rally, expectations of Nikkei rally, foreign currency hedges too

• USD/JPY highest in 40 years, next resistance 164.00, then 164.74 in Nov '86

• Market moving ever closer to especially massive 165.00 option barriers

• In expiries today, $2 bln at 163.00, supportive, also 163.07-80 $1.6 bln

• Tech support on dips from 163.10 hourly Ichimoku tenkan

• Option-related bids pre-163.00, hourly kijun 162.84, cloud 162.37-46

• Barring MOF-ordered FX intervention, USD/JPY to see new equilibrium on 163

• Related comments , , ,

• Also , on Middle East ,

• US markets , , ,

• On "new" Trump tariffs , for more click on [FXBUZ]

USD/JPY:


Nikkei 225:


NYMEX crude oil futures:

(Haruya Ida is a Reuters market analyst. The views expressed are his own)

• AUD/USD opens unchanged after failing to sustain a rise to a 1-month high

• Rally thwarted by USD strength; DXY at 1-week high as Treasury yields climb

• Iran war escalation and elevated oil prices boost Fed rate hike bets

• U.S.-10 year yield rises to 2-mth high on inflation concerns, capping AUD

• AUD outperforms as stocks, metals rally; AUD/JPY +0.45%, hits 7-week high

• But failure to sustain break of 0.7023, 38.2% Fibo of May-June drop bearish

• More resistance at 0.7050, 0.7070-75; support 0.6985-90, 0.6960-65

• Tuesday range 0.6993-0.7027
AUD:

(Krishna Kumar is a Reuters market analyst. The views expressed are his own.)

Danske Research maintains a bearish bias on EUR/CHF over the medium-term.

"Over the past month, EUR/CHF has edged higher to above the 0.92 mark, with the ECB delivering hikes and the Swiss National Bank (SNB) pushing back on hike expectations. We remain bearish on EUR/CHF and think the environment continues to favour a stronger CHF. We target the cross at 0.90 in 6-12 months," Danske notes.

"The SNB remains firmly on hold with its policy rate at 0% and we expect this to remain the case. At its most recent meeting, the SNB highlighted that underlying inflationary pressures remained broadly unchanged, despite headline inflation edging slightly higher. This is only further underpinned by the strong CHF and Switzerland’s favourable energy mix. We think this will keep the SNB from hiking rates. Combined with strong fundamentals, we think persistently diverging price levels favour a stronger CHF via the PPP. Additionally, a global investment environment characterised by weak global growth and elevated uncertainty benefits CHF. " Danske adds.

(Corrects typo in bullet #2)

• GBP$ soft in NorAm afternoon trade, -0.34% at 1.3385; NY range 1.3420-1.3360

• UK employment data marginally lower, unemployment a touch higher holds no sway on rates

• Wednesday's UK CPI moves into focus, headline and core both seen a touch lower

• UK data aside, lingering Mideast tensions rising oil hints at steady UK inflation

• UK politics also in mix; post regime change UK fiscal angst higher; UK 10-yr gilt abv 5%

• GBP$ supt 1.3374 falling 55-DMA, 1.3360 Tuesday low, 1.3348 50% Fib of 1.3140-1.3556

GBP Chart:


(Paul.Spirgel is a Reuters market analyst. The views expressed are his own)

ANZ Research likes buying the dips in EUR/GBP.

"EUR/GBP fell below 0.85 last week, breaking below key longterm support. However, momentum indicators are becoming stretched, with the 14-day RSI near 20, in oversold territory. Also, one-month risk reversals have fallen but remain above zero, suggesting options markets are not yet signalling a structurally GBP-bullish outlook," ANZ notes.

"We see an opportunity to buy on dips. Initial support lies at 0.842, with stronger resistance near the 50-dma at 0.862," ANZ adds.

• USD/CAD edging higher, move largely a function of broader USD strength

• CAD showed limited reaction to tariff headlines - U.S. set to impose 50% tariffs from Aug 19

• Market conditioned to Trump’s “escalate to de-escalate” approach, dampening knee-jerk reactions

• Lingering doubts around legal enforceability of tariffs also keeping price action contained

• 1.40 seen as initial floor, with stronger support layered at 1.3930-67

• Spot testing 1.41, break higher brings 1.4140 into focus

• Clearance of 1.4140 opens extension towards 1.4250
USDCAD 5 minute chart


USDCAD daily chart


Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))

Nomura Research notes that retail FX investors’ largely stretched net short USD/JPY positions are likely influencing the MOF’s judgement on when to intervene.

One likely big concern for the MOF is Japanese retail FX investors’ current JPY positions. As it became evident in the Financial Futures Association of Japan’s data for June that Japanese retail FX investors' net short USD/JPY positioning reached its highest level since data collection began in 2010 of $18bn. This substantial short position suggests they are trading USD/JPY in anticipation of near-term MOF intervention," Nomura notes.

This will be an issue of the MOF, as their large net short USD/JPY positions could undermine the effectiveness of intervention, as the MOF’s bold purchases of JPY would ultimately benefit retail investors' returns, and it’s reasonable that they will flip and buy USD/JPY after its dip. Therefore, these local investors will make it difficult for the MOF to meet its objective to strengthen the JPY, if it intervenes.

Considering these potential dynamics, the MOF could force retail investors to close their short positions before intervening to increase efficacy. We do not have a solid estimate of where these retail FX investors’ net short USD/JPY positions are concentrated; however, according to a Nikkei article (1 July), full-scale stop-loss orders in short USD/JPY are likely to be triggered from 163, with additional concentration around 164-165," Nomura adds.

EUR/USD's rally from the June 24 low is now at risk, and long-positioned investors may be considering an exit as yield differentials and oil's potential impact on Fed policy create downside risks for the pair.

In early July, the U.S.-German 2-year yield spread

—which EUR/USD typically correlates with—began tightening as U.S. inflation data caused yields to soften, a trend that persisted until last week and helped support EUR/USD's gains. However, the pair's rally stalled just short of resistance in the 1.1500 area, and spreads have since started widening again, increasing the dollar's yield advantage.

Compounding this, a recent sharp rally in oil prices has investors leaning toward the possibility of a more hawkish Fed

stance to combat oil-driven inflation pressures. This combination has pushed the spread back below -140 bps and toward -145 bps, becoming a growing weight on EUR/USD.

Technical factors add further pressure. EUR/USD's rally off the June low only briefly broke above the downtrend line from the May 11 high, and the pair has since fallen back below that line as well as its 10- and 21-day moving averages. The pair is now threatening to break the uptrend line drawn from the June 24 low.

Should that uptrend line break, it would suggest the recent rally was merely corrective within a broader downtrend, raising the possibility that the pair's longer-term decline could resume.
deus


eurusd


(Christopher Romano is a Reuters market analyst. The views expressed are his own)

Bank of America Global Research previews this week's July ECB policy meeting.

"We expect the ECB to leave policy rates unchanged this week. With no large surprises in data (inflation a bit weaker but activity data still showing a resilient economy) and energy prices not far from the ECB’s baseline forecasts, there is not enough sense of urgency to move policy rates now. Focus, as usual, will be on communication. But also, as has been the case over the last few meetings, we expect very little new from the ECB, either in the statement or from Lagarde during the press conference. The written communication is likely to stay close to what we had in June, hence keeping a hiking bias given that the June forecasts included more hikes than just the one that month," BofA notes.

"As a reminder, we expect one final hike from the ECB in September. A hold is not unthinkable: with oil prices around USD 70/bbl, the case for the ECB to pause had strengthened considerably (although it was not our base case)," BofA adds.

Morgan Stanley Research maintains a neutral bias on JPY in the near-term.

"We remain neutral on JPY. While a deterioration in global risk sentiment, driven by the sell-off in AI-related stocks,  should weigh on USD/JPY, this is likely to be offset by factors that are negative for JPY, including elevated US terminal  rate expectations and a worsening of Japan’s terms of trade amid renewed escalation of Middle East tensions," MS notes.

"As a  result, we expect USD/JPY to remain confined to a relatively narrow range. A more meaningful decline in USD/JPY  would likely require both a sharper deterioration in risk sentiment and a repricing lower in US terminal rate expectations. However, with market attention increasingly focused on US inflation, we view such a scenario as unlikely  in the near term," MS adds.

• U.S.-listed shares of copper miners rise premarket, tracking higher prices of the red metal [MET/L]

• Benchmark three-month copper on London Metal Exchange up 1.7% to $13,851 a metric ton

• Copper prices supported by firm demand in top consumer China, declining inventories and hopes that mediators can revive a ceasefire in the Iran war

• Shares of global mining giants Rio Tinto and BHP Group gain 1.4% and ~3%, respectively

• Copper miners Southern Copper and Freeport-McMoRan up 3.4% and ~4%, respectively

• Canada's Hudbay Minerals up 4%, Ero Copper advances ~6% and Teck Resources

gains ~2%

(Reporting by Dharna Bafna in Bengaluru)

• U.S.-listed shares of gold miners up premarket, tracking rise in bullion prices [GOL/]

• Spot gold up 1.5% at $4,067.64 per ounce as investors weighed diplomatic efforts to ease the U.S.-Iran conflict, which could temper oil-driven inflation risks and influence the Federal Reserve's interest rate path

• Top miners Newmont , Barrick Mining up 3% and 2.7%, respectively

• South African miners Gold Fields rises 2.5%, Harmony Gold jumps 3.6%, AngloGold Ashanti gains 3.4% and Sibanye Stillwater up 4.4%

• Canadian miners Agnico Eagle Mines rises 4.2% and Kinross Gold adds 3.3%

(Reporting by Pooja Menon in Bengaluru)

(Adds slug) Gold's rally on Tuesday is a concern for the many traders betting that the dollar rises, because stronger gold prices tend to precede drops in the dollar's value.

This was the case throughout the rally stemming from the trade war in 2025 from near $2,600/oz toward $5,600, until the rise in the price of gold became so severely stretched that it resulted in a drop. That fall met the target for a minor correction of gold's rise from near $1,600/oz in 2022 (38.2% at $4,073/oz) and alleviated the overbought conditions that led to the reverse.

Following a drop that has purged many of the investments in gold that were helping to stop it from rising further, the metal seems well-placed to resume a rally that seems logical amid conflicts in the Middle East and Ukraine that should support safe assets. Given the resulting spike in energy costs, an asset also deemed to be an inflation hedge could be eyed as an ideal investment.

Currency traders who have bought many dollars have seen little reward for their efforts. This heightens the chance of them paring risk. The dollar index has only gained around 3% during the establishment of the $42 billion net long, which is the second biggest bullish wager on record.

When the dollar fell almost 15% between February 2025 and January 2026, far fewer dollars were sold, with the net short less than half the size of the current long position. The dollar fell far more easily than it has risen this year and the resulting minor correction of the bigger slide could pave the way for a drop that is being signalled by gold's rally.
Gold


(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)

• After forming base above key levels, gold rallying

• Gold is considered to be safe

• The precious metal thought to be an inflation hedge

• There is a war that has boosted the cost of energy

• Rally was severely stretched, leading to correction

• Correction may be platform for rise beyond $6000

•
Gold


(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)

• FX option implied volatility sits on long term lows amid the lack of FX realised volatility

• Volatility is the lifeblood of options, so without it - volatility risk premiums drop and activity slows

• EUR/USD fits that mould, with large and soon-to-expire options/hedging flows helping to contain

• However, its worth noting the support for EUR put over call implied volatility premium on risk reversals

• Shows greater concern about EUR/USD losses than gains

• Any drop toward recent/1-year lows at 1.1325 is clearly expected to lift implied vol and option premium

• Related - FX options wrap - Summer lull trumps war risk
EUR/USD FXO implied volatility


EUR/USD 25 delta risk reversals


(Richard Pace is a Reuters market analyst. The views expressed are his own)

(Adds chart)

July 21 (Reuters) - Gold flagged a major bearish reversal signal in March and breached a key support level in June. Two further potential tipping points are now emerging on the monthly chart.

March's warning came via a bearish engulfing candle — a two-bar reversal pattern in which a decisive down-month completely swallows the prior month's gain, open to close. The scale of the reversal, erasing the entirety of the preceding advance, marked a significant shift in sentiment after gold's extended rally.

Confirmation followed in June, when gold closed below its 10-month moving average, exposing a low of $3,942 — a near-30% correction from January's $5,594 record high.

Gold has attempted to claw back some ground in July, but the recovery now sits just above two levels that remain critical to the broader downside picture: the 20-month moving average at $3,821 and the 50% Fibonacci retracement at $3,702. Should these give way on a fresh leg lower, the 61.8% "golden ratio" retracement at $3,255 would come into play.

A more constructive longer-term outlook would require gold to reclaim the 10-month moving average, now at $4,453 — the same level whose breach in June first signalled trouble.
Gold monthly chart:


(Peter Stoneham is a Reuters market analyst. The views expressed are his own)

• FX option strikes expire at 10am New York/14:00 GMT on Tuesday July 21

• EUR/USD: 1.1375-80 (636M), 1.1390 (316M), 1.1400 (2.6BLN), 1.1425 (428M), 1.1445-50 (1.8BLN)

• 1.1470-75 (2BLN), 1.1480-85 (2.6BLN), 1.1500 (1.9BLN)

• GBP/USD: 1.3375-85 (413M). AUD/NZD: 1.1900 (435M), 1.1950 (170M)

• AUD/USD: 0.6925 (1.9BLN), 0.7000-10 (1BLN), 0.7020-30 (520M). NZD/USD: 0.5860 (251M)

• USD/CAD: 1.4045 (300M), 1.4080 (285M), 1.4100 (507M), 1.4120-25 (1BLN), 1.4135 (480M)

• USD/JPY: 162.00 (680M), 162.15-25 (580M), 163.00 (571M), 163.15-20 (704M), 163.45 (3.5BLN)

• EUR/JPY: 186.15 (200M), 186.50 (330M)

• FX options wrap - Summer lull trumps war risk (Richard Pace is a Reuters market analyst. The views expressed are his own)

• USD/JPY doing little in tight 162.44-53 EBS range in Asia

• Essentially sideways since July 6, between 161.28 July 10, 162.71 July 8

• Threat of Japan FX intervention still on tries higher

• Hawkish Fed expectations, Middle East war, good Tokyo FX demand supportive

• Technically, USD/JPY holding above its 162.26-37 ascending hourly Ichi cloud

• Flat hourly kijun ahead of cloud at 162.41, 100/200-HMAs 162.31/23 in/below

• Nearby option expiries today 162.00-30 $1.4 bln, 162.50-75 $504 mln

• Massive $5.9 bln above between 163.00-50, below $1.4 bln between 161.25-75

• EUR/JPY 185.44-51 EBS, heavy but above 184.99-185.15 daily Ichi cloud

• Option expiries today include total E690 mln above between 186.15-50

• GBP/JPY 218.02-38, well off 219.58-60 double top July 16/15

• Holding above 217.91 daily Ichimoku tenkan but below 218.34-72 hourly cloud

• CHF/JPY on heavy side too, 200-27-64, tracking away from 200.59 200-HMA

• NZD/JPY, AUD/JPY better bid, hawkish CB expectations cited, NZD especially

• NZ inflation data high, suggests more RBNZ rate hikes in the offing

• NZD/JPY 94.70 to 95.42, best since 95.41/42 double top May 29/June 1

• AUD/JPY bid in sympathy, 113.58-90, towards 114.91 peak June 2?

• Tomorrow sees A$496 mln in option expiries just above at 114.00 strike

• Related , on NZD/JPY, GBP/JPY ,
USD/JPY hourly:


NZD/JPY hourly:


AUD/JPY hourly:

(Haruya Ida is a Reuters market analyst. The views expressed are his own)

• Shares of Australia's Dundas Minerals rise as much as 6.4% to A$0.05, their biggest intraday pct gain since July 9

• Stock at its highest level since July 10

• Gold explorer gets Aboriginal heritage (native title) clearance over its Capricorn Gold project in Western Australia, clearing the way to commence its planned drilling programme

• Stock has risen 16.3% this year, including session's moves
(Reporting by Roshan Thomas in Bengaluru)

• GBP/JPY on back foot following rise on feel-good effects of new UK PM

• 219.60 peak July 15 on Andy Burham's expected lock on premier-ship

• GBP/JPY downhill since from 219.60/58 double top July 15/16, today 218.02-34

• On hold just above daily Ichimoku tenkan at 217.91

• Also above hourly tenkan at 218.16 but below 218.38-72 Ichimoku cloud

• Hourly kijun near base of cloud at 218.39, 200/100-HMAs 217.80/218.51

• 200 and 100-HMAs likely define core parameters for now

• May take some time for market to digest ramifications of new Burnham cabinet

• That said, Gilt yields high, still good destination for summer carries

• Related comment , also , on UK cabinet
GBP/JPY daily:


GBP/JPY hourly:

(Haruya Ida is a Reuters market analyst. The views expressed are his own)

• NZD/USD up 0.3% on higher-than-expected New Zealand inflation

• Q2 inflation at 4.1% y/y, above analysts' forecasts of 4.0%

• Data reinforces expectations of further RBNZ rate hike

• Westpac expects further rate hikes at the Sept, December rate meetings

• NZD set for a retest of 0.5863, a one-month high; break opens 0.5900-10

• Support 0.5825-30, 0.5800-05; Asia range 0.5853-0.5859
NZD:

(Krishna Kumar is a Reuters market analyst. The views expressed are his own.)

• Seems little in way of movement in USD/JPY during Tokyo's long weekend

• USD/JPY remains relatively weak, still in stasis on 162, 162.49-50 EBS today

• Essentially sideways since July 6, between 161.28 July 10, 162.71 July 8

• Wider 160.49 low July 3, 162.84 high July 1 parameters into the fall?

• Threat of Japan FX intervention still on tries higher

• Hawkish Fed expectations, Middle East war, good Tokyo FX demand supportive

• JGB-US Treasury rate differentials narrower, in 2s @269, 10s @183 bps

• Technically, USD/JPY holding above its 162.26-37 ascending hourly Ichi cloud

• Flat hourly kijun ahead of cloud at 162.41, 100/200-HMAs 162.31/23 in/below

• Nearby option expiries today 162.00-30 $1.4 bln, 162.50-75 $504 mln

• Massive $5.9 bln above between 163.00-50, below $1.4 bln between 161.25-75

• Related comments , , ,

• And , also , on US-Iran ,

• US markets , , ,
USD/JPY daily:


USD/JPY hourly:


NYMEX WTI crude oil futures:

(Haruya Ida is a Reuters market analyst. The views expressed are his own)