The USD/JPY pair trades in positive territory around 158.30 during the early Asian session on Thursday. The US Dollar (USD) strengthens against the Japanese Yen (JPY) amid hopes for a solution in US President Donald Trump’s ambitions for Greenland that would avoid tariffs. 

EUR/USD retreats late Wednesday during the North American session, registers losses of over 0.30% as US President Donald Trump refrained from its threats of imposing tariffs over eight European countries over discussions of Greenland.

Australia will release the December monthly employment report on Thursday at 0:30 GMT, with market participants anticipating a modest recovery in labor market conditions.

The Japanese Yen (JPY) is little changed against the US Dollar (USD) on Wednesday, as rising political and fiscal concerns in Japan continue to weigh on sentiment. Meanwhile, a modest rebound in the Greenback is limiting the pair’s downside. At the time of writing, USD/JPY is trading around 158.15.

The Euro (EUR) traded softer on Wednesday after two days of strong gains, with price action reflecting shifting US political headlines and their impact on the US Dollar (USD) and bond yields.

GBP/USD turns negative on the day following remarks by the US President Donald Trump in Davos who said that he would not use excessive force to get Greenland. At the time of writing, the pair traded at 1.3433, down 0.03%.

The Euro (EUR) is soft, down a fractional 0.1% vs. the US Dollar (USD) as it underperforms all of the G10 currencies with the exception of GBP and CHF and fades a minor portion of Tuesday’s gains, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Swiss Franc (CHF) trades on the back foot against the US Dollar (USD) on Wednesday, as the Greenback finds some footing after coming under sustained pressure earlier this week. At the time of writing, USD/CHF is trading around 0.7940, snapping a three-day losing streak.

The Canadian Dollar (CAD) is little changed on the session and consolidating yesterday’s gains as markets stabilize and investors await developments, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The British Pound (GBP) edges lower against the Canadian Dollar (CAD) on Wednesday, as the latest UK inflation data fails to derail market expectations for a gradual easing path from the Bank of England (BoE). At the time of writing, GBP/CAD trades around 1.8540, down nearly 0.22% on the day.

EUR/USD slipped closer to 1.1700 on Monday after peaking near 1.1768, as ECB President Christine Lagarde emphasized stable monetary policy and downplayed the impact of US tariff threats, BBH FX analysts report.

Pound Sterling (USD) is on the defensive as UK December CPI shows mixed signals, with core inflation steady and services inflation slightly below expectations, BBH FX analysts report.

USD is likely to trade in a range between 157.60 and 158.60. In the longer run, USD appears to have entered a consolidation phase between 157.10 and 159.10, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Euro pulled back against the British Pound following strong UK CPI figures earlier on Wednesday, to find buyers ahead of the 0.8700 psychological level, and bounce up to explore fresh three-week highs, above 0.8730 at the time of writing

New Zealand Dollar (NZD) is likely to trade in a range between 0.5790 and 0.5850. In the longer run, further NZD strength is not ruled out, but it must first surpass 0.5855 before a move to 0.5885 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Australia Dollar (AUD) could trade sideways between 0.6700 and 0.6745. In the longer run, there is a chance for AUD to test the significant resistance at 0.6765, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Pound Sterling’s (GBP) recent weakness reflects lingering sensitivity to bond-market volatility, though calmer conditions may allow EUR/GBP to drift back below 0.870. - December UK inflation data offered little new for the Bank of England, with core services steady at 4.0% and a modest headline upti

Germany 30-y Bond Auction up to 3.49% from previous 3.45%

The near-term bias is tilted to the upside, but Pound Sterling (GBP) may not break above 1.3505, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Instead of continuing to rise, EUR is more likely to consolidate between 1.1690 and 1.1770. In the longer run, risk for EUR remains on the upside; the probability of it breaking above 1.1805 is not high for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The GBP/JPY cross extends the previous day's late pullback from the vicinity of mid-213.00s and trades with a negative bias on Wednesday, snapping a two-day winning streak.

EUR/USD holds firm above 1.1700, trading at 1.1722 at the time of writing on Wednesday, practically flat on the daily chart after having rallied 1.2% over the previous two days.

The Pound Sterling (GBP) gains against its major peers on Wednesday after the United Kingdom's (UK) Office for National Statistics (ONS) has reported that inflation grew at a faster-than-projected pace in December.

Here is what you need to know on Wednesday, January 21:

The EUR/GBP cross loses ground to near 0.8720 during the early European session on Wednesday. The Pound Sterling (GBP) edges higher against the Euro (EUR) after the UK Consumer Price Index (CPI) inflation report.

The NZD/USD pair trades in positive territory for the fourth consecutive day near 0.5835 during the early European session on Wednesday. The US Dollar (USD) weakens against the New Zealand Dollar (NZD) as US President Donald Trump's tariff threats spark new fears of 'Sell America' trade.

The USD/CAD pair trades in a tight range around 1.3835 during the late Asian trading session on Wednesday, but is close to its over-a-week low of 1.3815.

The AUD/JPY cross loses traction to around 106.45 during the early European session on Tuesday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) as traders pile into safe-haven currencies amid US President Donald Trump's renewed tariff threats. 

The Indian Rupee (INR) slumps to a record low against the US Dollar (USD) at open on Wednesday.

USD/CHF halts its three-day losing streak, trading around 0.7910 during the Asian hours on Wednesday. The pair gains ground as the US Dollar (USD) recovers its daily losses despite rising United States (US)–Greenland concerns.