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AI-Enhanced Forex News Archive

Professional trading insights from Wednesday, July 23, 2025

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News Statistics for Wednesday, July 23, 2025

14
Total Articles
6
Bullish
1
Bearish
7
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Archive date: Wednesday, July 23, 2025

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Forexlive

USD/JPY edges higher despite US-Japan trade deal, yen struggles

USD/JPY has ticked up 0.2% to 151.45 in early European trading, as the yen failed to capitalize on the newly announced US-Japan trade agreement. The comprehensive trade pact, aimed at reducing tariffs and enhancing bilateral economic cooperation, initially sparked hopes for yen strength but market reaction remained muted. Strong US Treasury auction results, with the 20-year bond yielding 4.935% and attracting robust demand (bid-to-cover ratio of 2.79x versus 2.62x average), supported dollar strength. The auction showed exceptional domestic participation at 21.86%, well above the 18.0% six-month average, indicating continued confidence in US debt. Technical indicators suggest USD/JPY faces immediate resistance at 151.80, with support established at 151.00. Traders are monitoring whether the trade deal's long-term benefits might eventually boost yen sentiment, though near-term dollar strength from solid Treasury demand appears dominant.
USDJPY
Sentiment: Positive
Source: Finnhub
Forexlive

USD/JPY edges higher as US removes AI regulations, trade pact impact limited

USD/JPY has gained 0.2% to trade at 154.85 during Asian trading, supported by the White House announcement to remove restrictive AI development regulations. The policy shift aims to boost US technology sector competitiveness, potentially strengthening dollar flows into tech investments. Meanwhile, the yen found only limited support from a new regional trade agreement, as investors remain focused on the Bank of Japan's ultra-loose monetary policy stance. The pair broke above the 154.50 resistance level, with momentum indicators suggesting further upside potential. Technical analysis shows immediate resistance at 155.20 (monthly high), while support sits at 154.30 (previous day's low). Traders are closely monitoring upcoming US GDP data and any signals from the BoJ regarding potential policy normalization, which could significantly impact the pair's trajectory in coming sessions.
USDJPY
Sentiment: Positive
Source: Finnhub
forexlive.com

European stocks rally on US-Japan trade optimism, FX markets mixed

European equity markets posted solid gains during Wednesday's morning session, with major indices climbing 0.5-0.8% on positive sentiment surrounding the US-Japan trade agreement. The deal's potential to boost global trade flows lifted risk appetite, though currency markets showed divergent reactions. EUR/USD remained range-bound near 1.0920, lacking clear directional momentum despite the risk-on environment. GBP/USD edged 0.1% lower to 1.2845 as traders awaited UK economic data releases. The Swiss franc weakened marginally against major counterparts, with USD/CHF rising to 0.8975 as safe-haven demand diminished. Market participants noted the disconnect between equity optimism and currency market caution, suggesting forex traders remain focused on central bank policy divergences rather than trade developments. Near-term currency volatility appears limited, with major pairs consolidating within recent ranges ahead of key economic releases later this week.
EURUSD GBPUSD USDCHF
Sentiment: Neutral
Source: Marketaux
investing.com

USD/JPY drops on US-Japan trade deal amid risk-on sentiment

USD/JPY declined 0.5% to 155.20 as markets responded positively to a newly announced trade agreement between the United States and Japan. The deal, which reduces tariffs on key industrial goods and agricultural products, boosted risk appetite and weakened the safe-haven dollar. Japanese equities rallied 1.2% following the announcement, with the Nikkei reaching new highs for the month. The yen's strength was further supported by expectations that the Bank of Japan may adjust its yield curve control policy sooner than anticipated. Technical indicators show USD/JPY breaking below the 155.50 support level, with the next target at 154.80. The 50-day moving average at 156.00 now acts as resistance. Traders should monitor upcoming US GDP data and Japanese inflation figures, which could either accelerate the pair's decline or trigger a reversal if the data surprises to the upside.
USDJPY
Sentiment: Negative
Source: Marketaux
Forexlive

Gold tests key $2,050 resistance as real yields fall and USD weakens

Gold prices advanced 0.8% to $2,048 per ounce, approaching the critical $2,050 resistance level as declining real yields and a softer US dollar provided support. The move follows last week's lower-than-expected US CPI data, which came in at 3.1% year-over-year versus 3.3% forecast, reinforcing expectations for Federal Reserve rate cuts in 2025. Real yields dropped 15 basis points to 1.85%, making non-yielding gold more attractive to investors. Market positioning data shows net long positions increasing by 12% over the past week. The technical picture remains constructive with gold holding above its 20-day moving average at $2,035. A decisive break above $2,050 could open the path to $2,075, while failure to breach resistance may lead to consolidation between $2,035-2,050. The longer-term outlook remains bullish as monetary easing expectations persist.
XAUUSD
Sentiment: Very Positive
Source: Finnhub
investing.com

USD/JPY mixed as US-Japan deal boosts risk but limits yen gains

USD/JPY traded volatile around 155.40 following the US-Japan trade agreement announcement, with conflicting forces affecting the pair. While the deal initially sparked risk-on sentiment that typically weakens the yen, the agreement's provisions for increased Japanese exports to the US are expected to strengthen Japan's trade balance. The pair briefly touched 155.80 before retreating to current levels. Other risk-sensitive pairs showed clearer trends, with AUD/USD gaining 0.4% to 0.6520 and USD/ZAR falling 0.6% to 18.25. Market participants remain divided on the yen's direction, with some expecting continued weakness due to yield differentials while others anticipate BoJ policy normalization. Near-term support sits at 155.00, with resistance at 156.20. Traders should watch for follow-through in risk sentiment and any comments from Japanese officials regarding currency levels.
USDJPY EURUSD AUDUSD USDZAR
Sentiment: Neutral
Source: Marketaux
investing.com

Strong US 20-year Treasury auction boosts dollar across major pairs

The US dollar strengthened following an exceptionally well-received $13 billion 20-year Treasury bond auction, with yields settling at 4.935%, below the When-Issued level of 4.951%. The auction displayed remarkable demand characteristics, featuring a negative tail of -1.6 basis points versus the -0.1 average, and a bid-to-cover ratio of 2.79x compared to the typical 2.62x. Direct bidder participation surged to 21.86% from the 18.0% average, signaling robust domestic appetite for US debt. The dollar index climbed 0.3% to 104.25, with EUR/USD dropping to 1.0915 and GBP/USD sliding to 1.2840. The strong auction results reinforced expectations that the Federal Reserve can maintain higher rates without destabilizing the bond market. Technical analysis shows the dollar index approaching resistance at 104.50, with momentum indicators suggesting further upside potential if Treasury demand remains elevated.
EURUSD GBPUSD
Sentiment: Positive
Source: Marketaux
Forexlive

EUR/USD drifts on empty calendar; Eurozone confidence data ahead

EUR/USD remains range-bound near 1.0850 levels as forex markets face an exceptionally quiet data calendar, with only the Eurozone consumer confidence report scheduled for release. The pair has shown minimal movement of less than 0.1% (10 pips) in early European trading, reflecting the absence of major catalysts. Traders are largely sidelined, maintaining positions based on recent narratives around ECB and Fed policy divergence. The upcoming Eurozone consumer confidence data is unlikely to significantly impact trading, given its typically limited market influence. Technical indicators suggest EUR/USD is consolidating within a tight 1.0830-1.0870 range, with neither buyers nor sellers showing conviction. The lack of economic releases leaves the pair vulnerable to headline-driven volatility or continuation of recent trends. Traders should monitor any unexpected geopolitical developments or central bank communications that could break the current stalemate.
EURUSD
Sentiment: Very Positive
Source: Finnhub
Forexlive

S&P 500 Futures Hit Record High - USD Impact on Forex Markets

S&P 500 Futures surged 0.25% to 6363 points, reaching another record high as risk appetite strengthens across global markets. The sustained equity rally is creating mixed signals for USD pairs, with the dollar showing resilience despite the risk-on environment. Strong corporate earnings expectations are driving investor optimism, potentially reducing safe-haven demand for USD and JPY. The divergence between the S&P 500's continued climb and Nasdaq's pause suggests sector rotation rather than broad market weakness. For forex traders, the persistent equity strength could pressure funding currencies like JPY and CHF while supporting commodity currencies. Key USD pairs to watch include USD/JPY near 156.50 resistance and AUD/USD testing 0.6750. Continued equity gains may limit dollar upside, particularly if earnings reports exceed expectations and reinforce the soft-landing narrative for the US economy.
USDJPY AUDUSD
Sentiment: Positive
Source: Finnhub
forexlive.com

USD/JPY Whipsaws on US-Japan Trade Deal Uncertainty

USD/JPY exhibited heightened volatility during Asian trading, fluctuating between 155.80 and 156.20 as markets digested news of a US-Japan trade agreement. The pair's indecisive price action reflects conflicting interpretations of the deal's impact on bilateral trade flows and currency dynamics. Initial yen strength on expectations of improved Japanese export competitiveness was quickly reversed as traders reassessed potential USD demand from increased bilateral trade. The choppy trading conditions suggest market participants lack clarity on the agreement's specific terms and implementation timeline. Technical indicators show USD/JPY trapped between the 156.50 resistance and 155.50 support, with momentum oscillators signaling neutral bias. Traders should expect continued volatility until more details emerge about the trade deal's provisions. The Bank of Japan's policy stance remains a key factor, with any hints of normalization likely to provide clearer directional bias for the pair.
USDJPY
Sentiment: Neutral
Source: Marketaux
forexlive.com

Nikkei Rallies on Trade Deal While JPY Remains Choppy vs Major Currencies

Asian markets saw divergent reactions to the US-Japan trade announcement, with the Nikkei 225 surging 1.2% while JPY pairs displayed erratic behavior across the board. USD/JPY fluctuated in a 40-pip range around 156.00, unable to establish clear direction despite the positive equity sentiment. EUR/JPY and GBP/JPY showed similar indecision, trading in tight ranges near 169.50 and 198.20 respectively. The trade deal's boost to Japanese exporters failed to translate into sustained yen strength, as traders remained cautious about the Bank of Japan's ultra-loose monetary policy. Market participants are weighing improved trade relations against persistent Japan-US yield differentials. Technical analysis shows JPY pairs consolidating within recent ranges, awaiting catalysts for breakout moves. The disconnect between surging Japanese equities and choppy yen price action suggests traders need more clarity on the deal's long-term implications for Japan's economic outlook and potential BoJ policy adjustments.
USDJPY EURJPY GBPJPY
Sentiment: Neutral
Source: Marketaux
Forexlive

USD/JPY faces pressure as Japan boosts US agricultural imports

USD/JPY trading remains subdued near 153.20 following news that Japan will increase agricultural imports from the United States, including rice purchases. The Trump administration official confirmed the expanded trade arrangement maintains existing sectoral tariffs, suggesting limited immediate impact on the currency pair. Market participants are weighing the trade development against broader political uncertainties affecting yen sentiment. The increased agricultural purchases could marginally improve US trade balance figures, providing mild dollar support. However, the absence of broader tariff adjustments limits the agreement's forex market impact. Technical indicators show USD/JPY consolidating below the 153.50 resistance level, with support established at 152.80. Traders await further clarity on US-Japan trade negotiations and potential Bank of Japan policy adjustments for clearer directional signals.
USDJPY
Sentiment: Neutral
Source: Finnhub
forexlive.com

USD/JPY: Limited yen gains expected despite positive trade developments

USD/JPY remains range-bound near current levels as SMBC analysts suggest positive trade news will provide only modest support for the Japanese yen amid ongoing political uncertainties. The bank's assessment indicates that while recent US-Japan trade developments may offer temporary yen strength, broader political risks continue to cap appreciation potential. Market participants are cautious about sustained yen rallies given the complex geopolitical landscape and mixed economic signals from both economies. The analysis suggests traders should expect continued volatility in USD/JPY with limited directional conviction. Technical levels show the pair consolidating within a narrow range, with resistance at 153.50 and support at 152.50. Near-term price action likely depends on resolution of political uncertainties and any shifts in central bank policy stances from either the Federal Reserve or Bank of Japan.
USDJPY
Sentiment: Neutral
Source: Marketaux

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