GBP/USD remains steady for the second successive session, trading around 1.3430 during the Asian hours on Thursday. The momentum indicator 14-day Relative Strength Index (RSI) is at 51 (neutral) after retreating from overbought readings, indicating balanced momentum.

The NZD/USD pair loses ground to near 0.5740 during the Asian trading hours on Thursday. The New Zealand Dollar (NZD) weakens against the US Dollar (USD) amid renewed fears of a trade war between the US and China.

USD/CAD remains in the positive territory for the third successive session, trading around 1.3890 during the Asian hours on Thursday. The pair holds ground as the US Dollar (USD) receives support from stronger-than-expected US economic data.

AUD/USD edges lower after registering slight gains in the previous session, trading around 0.6680 during the Asian hours on Thursday. The pair loses ground after Australia’s Consumer Inflation Expectations were released.

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EUR/USD consolidates on Wednesday, hoovers around the 1.1645, unchanged amid a risk-off mood sponsored by geopolitical risks, which kept traders on the sidelines.

The USD/JPY pair tumbles to around 158.25 during the early Asian session on Thursday. The Japanese Yen (JPY) rebounds against the US Dollar (USD) after Japanese officials warned of potential intervention to shore up the currency.

NZD/USD trades higher on Wednesday, hovering around 0.5750 at the time of writing, up 0.25% on the day.

The Japanese Yen (JPY) strengthens against the US Dollar (USD) on Wednesday after fresh warnings from Japanese authorities revived speculation of possible intervention to curb excessive Yen weakness.

The British Pound extended its gains on Wednesday as the Greenback is punished by investors due to threats to the Federal Reserve’s independence and a verbal intervention by Japanese officials, boosted the Yen. The GBP/USD trades at 1.3461 up by 0.30%.

AUD/USD trades around 0.6680 on Wednesday at the time of writing, virtually unchanged on the day, as investors digest a series of key macroeconomic releases from the United States (US) and Asia.

The Euro (EUR) is trading marginally higher against the US Dollar (USD), consolidating after its retreat from late-December highs as European Central Bank (ECB) commentary strikes a more balanced tone, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Euro (EUR) trades little changed against the US Dollar (USD) on Wednesday, with traders showing a muted reaction to the latest US Producer Price Index (PPI) and Retail Sales data.

The Canadian Dollar (CAD) is steady, up fractionally vs. the US Dollar (USD) as it trades in a tight consolidation range following its decline from late December. The recovery in oil prices is important and is offering the CAD some fundamental support.

The Euro (EUR) trims part of its gains against the Swiss Franc (CHF) on Wednesday as traders digest remarks from key European Central Bank (ECB) officials amid a thin economic calendar on both sides.

The USD/CAD pair trades flat around 1.3885 during the European trading session on Wednesday. The Loonie pair consolidates ahead of the United States (US) Producer Price Index (PPI) data for October and November, and the Retail Sales data for November.

USD/JPY eased below 159.00 after hitting 159.45 overnight, prompting fresh warnings from Japanese Finance Minister Satsuki Katayama against speculative or excessive yen movements, BBH FX analysts report.

The Japanese Yen is trimming some losses on Wednesday as the US Dollar recovery falters.

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Strong momentum indicates further US Dollar (USD) strength; the significant resistance at 160.00 is likely out of reach for now. In the longer run, strong USD rally has scope to extend, potentially breaking above 160.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Speculation over early elections in Japan has driven renewed Japanese Yen (JPY) underperformance, pushing USD/JPY toward the 160 level while lifting JGB yields and domestic equities.

EUR/GBP trades around 0.8660 on Wednesday at the time of writing, down 0.12% on the day, as the Pound Sterling (GBP) benefits from cautious investor positioning ahead of UK growth data.

The New Zealand Dollar is ticking higher on Wednesday but remains trading within Tuesday’s range, with upside attempts capped below 0.5750 and FX volatility subdued.

Slight increase in downward momentum is likely to lead to a lower range of 0.5720/0.5765 rather than a continued decline. In the longer run, for the time being, NZD is likely to trade in a range between 0.5720 and 0.5805, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

There is a chance for Australian Dollar (AUD) to test 0.6670; the major support at 0.6655 is not expected to come into view. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR/USD is practically flat on Wednesday, trading just below 1.1650 at the time of writing, with one-month lows in the 1.1615 area in sight, which are at a relatively short distance.

There seems to be no way of stopping the USD/JPY rally. Speculation of snap elections is mounting, and the return of some degree of political risk premium is offering another chance to test Japan’s tolerance band on its currency.

GBP/JPY eases below 214.00 after hitting fresh all-time highs at 214.30.

The Pound Sterling (GBP) gains against its major peers, except antipodeans, on Wednesday. The British currency trades higher ahead of the United Kingdom (UK) monthly Gross Domestic Product (GDP) and factory data, which will be released on Thursday.

Slight increase in downward momentum could lead to Euro (EUR) edging lower, but a break of 1.1615 appears unlikely.