USD Extends Post-Fed Decline as BOE Holds Rates; USD/JPY Drops

The US dollar continued its post-Federal Reserve selloff during European trading on July 30, with USD/JPY experiencing a sharp stumble lower before staging a modest bounce. The Bank of England kept its bank rate unchanged at 3.75% as widely expected, providing stability for the pound while markets digested the Fed's recent policy signals. The dollar's broad-based weakness suggests traders are pricing in a more dovish Fed trajectory, weighing on the greenback across major pairs. In the bond market, positioning appears to reflect skepticism around potential Fed leadership changes, with yields signaling divergence from certain policy expectations. GBP/USD benefited from the BOE's steady hand, as the hold decision aligned with market consensus and reinforced the current rate differential. Equity markets also factored into the risk landscape, with analysts cautioning against buying stocks solely on sharp declines. Traders should monitor upcoming US economic data releases for further dollar direction, while GBP pairs may consolidate near current levels following the BOE's in-line decision. Key support and resistance levels in USD/JPY and GBP/USD remain in focus for near-term positioning.