USD 
EUR 
GBP 
JPY
It's been a wild day, and you'd have noticed the USD/JPY taking a nosedive, down 1.93% - which was pretty wild, considering it's been trading sideways for a while. The catalyst seems to be possible intervention, with the price falling below its 100-day moving average for the first time since mid-May. If you were watching the USD/JPY, you'd have seen it drop like a stone, with the low price reaching 160.87. And honestly, it's not surprising, given the rumors of intervention.
But what's really driving this move? According to ForexLive, the Atlanta Fed model predicted a slower quarter, and with the 2nd quarter GDP advance coming in at 1.5% versus 2.1% expectations, it's clear that the economy is slowing down. BOE Bailey's comments on disinflation proceeding slowly and the labor market weakening gradually didn't help the dollar either. The USD is sharply to the downside, led by the USD/JPY, and it's not just the yen - the USD/CHF is down 0.79%, and the GBP/JPY is down 1.54%. If you're looking at the hourly chart, you'd see that the price is trading toward the July low at 160.446. FXStreet pointed out that the yen's strength is a major theme today, and it's hard to argue with that.
And it's not just the yen - the AUD/USD is up 0.6%, which is a nice move, considering the weak Chinese data. The euro's been pretty quiet, but the EUR/GBP is still holding steady at 0.8570. The US Dollar / Yen is currently at 159.2810, and the British Pound / US Dollar is at 1.3428. According to DailyFX, the GDP sales data is still a major driver of the market, and with the numbers coming in lower than expected, it's no wonder the dollar's taking a hit.
So what's next? It's hard to say, but with the intervention rumors still circulating, it's likely we'll see more volatility in the USD/JPY. The Atlanta Fed GDPNow and Gross Domestic Product numbers are still fresh in our minds, and it's clear that the economy is slowing down. If you're looking to trade the yen, you'd better be ready for some wild moves - and it's not just the yen, the whole market's on edge. The USD/CHF is still looking a bit shaky, and the AUD/USD might be due for a correction, but for now, it's all about the yen.
Intervention Fears Dominate
But what's really driving this move? According to ForexLive, the Atlanta Fed model predicted a slower quarter, and with the 2nd quarter GDP advance coming in at 1.5% versus 2.1% expectations, it's clear that the economy is slowing down. BOE Bailey's comments on disinflation proceeding slowly and the labor market weakening gradually didn't help the dollar either. The USD is sharply to the downside, led by the USD/JPY, and it's not just the yen - the USD/CHF is down 0.79%, and the GBP/JPY is down 1.54%. If you're looking at the hourly chart, you'd see that the price is trading toward the July low at 160.446. FXStreet pointed out that the yen's strength is a major theme today, and it's hard to argue with that.
And it's not just the yen - the AUD/USD is up 0.6%, which is a nice move, considering the weak Chinese data. The euro's been pretty quiet, but the EUR/GBP is still holding steady at 0.8570. The US Dollar / Yen is currently at 159.2810, and the British Pound / US Dollar is at 1.3428. According to DailyFX, the GDP sales data is still a major driver of the market, and with the numbers coming in lower than expected, it's no wonder the dollar's taking a hit.
So what's next? It's hard to say, but with the intervention rumors still circulating, it's likely we'll see more volatility in the USD/JPY. The Atlanta Fed GDPNow and Gross Domestic Product numbers are still fresh in our minds, and it's clear that the economy is slowing down. If you're looking to trade the yen, you'd better be ready for some wild moves - and it's not just the yen, the whole market's on edge. The USD/CHF is still looking a bit shaky, and the AUD/USD might be due for a correction, but for now, it's all about the yen.