ForexLive European FX news wrap: Japanese yen bulls throw in the towel

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/centralbank/boj-reportedly-erring-towards-leaving-policy-unchanged-next-week-20230721/">BOJ reportedly erring towards leaving policy unchanged next week</a></li><li><a href="https://www.forexlive.com/news/japanese-yen-falls-further-on-the-week-on-word-that-boj-is-likely-to-keep-policy-unchanged-20230721/">Japanese yen falls further on the week on word that BOJ is likely to keep policy unchanged</a></li><li><a href="https://www.forexlive.com/news/japan-10-year-yields-fall-to-two-week-lows-as-boj-hopes-squandered-once-again-20230721/">Japan 10-year yields fall to two-week lows as BOJ hopes squandered once again</a></li><li><a href="https://www.forexlive.com/news/japan-top-currency-diplomat-kanda-says-watching-fx-market-with-sense-of-urgency-20230721/">Japan top currency diplomat Kanda says watching FX market with sense of urgency</a></li><li><a href="https://www.forexlive.com/news/major-central-bank-decisions-return-to-the-spotlight-next-week-20230721/">Major central bank decisions return to the spotlight next week</a></li><li><a href="https://www.forexlive.com/news/uk-june-retail-sales-07-vs-02-mm-expected-20230721/">UK June retail sales +0.7% vs +0.2% m/m expected</a></li><li><a href="https://www.forexlive.com/news/icymi-nasdaq-to-undergo-special-rebalancing-effective-next-week-20230721/">ICYMI: Nasdaq to undergo "special" rebalancing effective next week</a></li></ul><p>Markets:</p><ul><li>CHF leads, JPY lags on the day</li><li>European equities mixed; S&amp;P 500 futures up 0.2%</li><li>US 10-year yields down 1.3 bps to 3.840%</li><li>Gold down 0.2% to $1,966.17</li><li>WTI crude up 1.1% to $76.52</li><li>Bitcoin up 0.1% to $29,789</li></ul><p>What looked to be a quiet session didn't pan out that way, as the Japanese yen took center stage and fumbled after a Reuters report saying that the BOJ is not likely to tweak its policy settings next week.</p><p>The yen has already been on the descend since the end of last week but saw a considerable drop today with USD/JPY rising from around 140.30 to a high of 141.95 after the news. That came alongside a notable drop in 10-year JGB yields, which hit a low of 0.406% from around 0.480% at the start of the day.</p><p>As the yen dropped, the dollar managed to consolidate its position once again as it holds steadier across the board. UK retail sales provided just a brief lift to the pound with cable rising to 1.2900 from around 1.2875 before falling to 1.2825 currently.</p><p>The antipodean currencies also didn't enjoy themselves despite risk sentiment keeping in more positive light. AUD/USD is down 0.7% to 0.6735 and NZD/USD down 0.8% to 0.6185 at the moment.</p><p>As we look towards the end of the week, US stocks will be a focus point with $2.4 trillion options contracts set to expire alongside the anticipation of the rebalancing in the Nasdaq.</p>

This article was written by Justin Low at www.forexlive.com.