[MARKET ANALYSIS] DXY trades steadily after ultimately gaining against most major peers, while JPY fades some of the post-intervention advances

DXY: Flat

• Dollar trades steadily overnight after ultimately gaining against most major peers yesterday, despite the decline in oil prices and yields, while recent data was encouraging as ISM Manufacturing PMI beat in July, driven by increases in production and new order indices, while the Atlanta Fed's GDP now Q3 estimate was revised up to 6.2% from 5.0%.

EUR/USD: Flat

• Price action is little changed in the absence of any major fresh catalysts for the bloc and with the prior day's declines stemmed after support held at the 1.1500 level.

GBP/USD: Flat

• Lingers around yesterday's trough after pulling back from resistance around the 1.3500 level, with the currency not helped by the recent miss on UK Manufacturing PMI data.

USD/JPY: +0.3%

• Continues its mild recovery from post-intervention lows and gradually approaches closer towards retesting the 158.00 level, with very few fresh catalysts and a lack of tier-1 data overnight.

Antipodeans: AUD/USD +0.3% / NZD/USD Flat

• Trades range-bound but with slight outperformance in AUD/USD following stronger-than-expected Household Spending data.

This is a session recap rather than a fresh catalyst, and the analytically live thread is the JPY leg: post-intervention fades are a well-worn pattern, in which official yen-buying typically produces a sharp initial move that then bleeds back over subsequent sessions unless followed by repeated operations or a shift in the underlying rate differential. Historically, unilateral intervention of this kind has altered the pace of depreciation more than its direction, and the gradual drift back toward the prior level is the usual sequence when the US-Japan yield gap is left intact; the tell for whether the episode has more to run is whether verbal or actual follow-through accompanies any retest of the levels that drew the initial response. Elsewhere the dollar's resilience despite softer yields and oil fits the familiar pattern of data-driven support, with strong activity surveys and an upgraded growth nowcast offsetting the rates channel. The split among the majors is conventional: the euro pinned at a round-number support, sterling weighed by its own survey miss, and antipodeans driven by domestic data rather than the dollar leg. What matters next is the US data calendar, since a dollar holding firm on growth surprises while yields fall is a configuration that has historically resolved in favour of whichever side the next tier-one release supports.