The Yen Adds to BOJ Pressure (07.22.2026)

Japan's 10-year yield rose to 2.74%, a one-week high, as higher oil prices and a 40-year low in the yen reinforced expectations of further BOJ tightening.

Traders also awaited a JPY 300 billion bond auction after June's trade deficit.

The 10-year Treasury yield held near 4.63%, a two-month high, as higher oil prices supported inflation concerns. ADP hiring slowed for a fourth straight month, while markets priced over a 55% chance of a September Fed rate hike.

Euro Waits on Frankfurt

The euro held above $1.14 ahead of Thursday's ECB decision. Rates are expected to remain unchanged after June's hike, although markets still price two more increases by year-end, starting as early as September. Hopes for renewed US-Iran talks also remained in focus as oil prices continued to influence the inflation outlook.

The first resistance is at 1.1430, while support begins at 1.1380.

Gold’s Climb Continues

Gold approached $4,200 as higher oil prices kept inflation concerns in focus. Trump dismissed the prospect of near-term talks with Iran and warned of further strikes, while disruptions in the Red Sea and attacks on Russia's Caspian Pipeline added to supply concerns. Slower ADP hiring also left markets pricing over a 55% chance of a September Fed rate hike.

First resistance is at $4,160, with initial support near $4,100.

No Relief for the Yen

The yen weakened beyond 163 per dollar, its lowest level since October 1986, keeping markets on alert for possible intervention. Middle East tensions pushed oil prices higher, weighing on Japan's import-dependent economy, while a stronger dollar and rising Treasury yields widened rate gaps and encouraged carry trades.

Fiscal concerns over new spending plans and the BOJ's cautious policy approach added further pressure, as June's trade balance slipped back into deficit.

Initial resistance stands at 163.30, while the first support is at 162.80.

A New Cabinet, A New Direction

Sterling slipped below $1.34, touching a weekly low as traders digested Andy Burnham's first cabinet appointments. His decision to name John Healey as Chancellor lifted expectations for higher defence spending, although both emphasized fiscal discipline. June public borrowing also came in below forecasts.

From a technical view, resistance stands near 1.3430, with support around 1.3340.

Silver Still Dependent on Macro Data

Silver climbed toward $60 as stronger oil prices kept inflation concerns in focus. Trump's comments on Iran, disruptions in the Red Sea, attacks on Russia's Caspian Pipeline, and softer ADP employment data all supported expectations of over a 55% chance of a September Fed rate hike.

From a technical view, resistance stands near $60.50, while support is located around $58.50.