BNY’s Geoff Yu highlights that the Japanese Yen (JPY) remains significantly undervalued on a Real Effective Exchange Rate (REER) basis even as Euro (EUR) and US Dollar (USD) valuations have converged.

EUR/GBP trades choppy on Thursday, with the British Pound (GBP) modestly outperforming the Euro (EUR) on the back of resilient UK economic data, while traders also assess growing political noise in the United Kingdom.

USD/JPY trades around 157.95 on Thursday at the time of writing, up modestly by 0.05% on the day, as the pair remains close to its highest level in two weeks.

BNY’s Bob Savage notes that India is considering cutting taxes on foreign investors’ bond income to attract inflows and support the Indian Rupee (INR), which has fallen over 6% against the US Dollar (USD) in 2026.

MUFG’s Lee Hardman notes that rising long-term JGB yields, driven by inflation risks linked to the Middle East conflict and hawkish BoJ commentary, are reinforcing expectations for a near-term policy rate increase.

The US Dollar (USD) is trading flat, right above 0.7800 against the Swiss Franc on Thursday as investors bid their time awaiting the outcome of US President Trump’s visit to China.

The Australian Dollar (AUD) trades lower against its major currency peers, is down 0.25% to near 0.7240 against the US Dollar (USD) during the European trading session on Thursday.

UOB economists Quek Ser Leang and Lee Sue Ann highlight that AUD/USD extended beyond the expected range to 0.7272, but near-term momentum still looks modest. Intraday, further gains are possible yet seen unlikely to reach 0.7280, with support at 0.7245 and 0.7230.

USD/CAD trades around 1.3705 on Thursday at the time of redaction, virtually unchanged on the day, as markets price in mixed effects following news from the US-China summit.

Brown Brothers Harriman’s (BBH) Elias Haddad notes USD/JPY is trading in a 155.00-160.00 range and expects this to persist until the energy shock fades, despite a constructive stance on Japanese Yen (JPY).

The British Pound (GBP) keeps trading within previous ranges against the Japanese Yen (JPY) on Thursday.

The Japanese Yen (JPY) reflects weakness against the US Dollar (USD) during the European trading session on Thursday, with the USD/JPY pair holding onto the two-week high near 158.00. The pair remains firm due to the continued outperformance of the US Dollar.

The Euro (EUR) is hovering right above 1.1700  against the Dollar (USD) on Thursday, about 0.65% lower so far this week.

The Euro (EUR) remains practically flat around the 0.8660 area against the British Pound (GBP) on Thursday. UK Gross Domestic Product (GDP) and Manufacturing Production figures beat expectations in March, but the growing political uncertainty is keeping the pair from dropping further.

Here is what you need to know on Thursday, May 14:

AUD/USD inches lower after registering modest gains in the previous day, trading around 0.7250 during the Asian hours on Thursday. The technical analysis of the daily chart indicates that the pair is remaining within the ascending channel, suggesting an ongoing bullish bias.

The Pound (GBP) remains practically flat against the US Dollar (USD) on Thursday, trading at 1.3520 at the moment of writing, and consolidating losses after pulling back from 1.3650 highs earlier in the week.

Michael Wan at MUFG reports that the Japanese Yen (JPY) has borne the brunt of renewed US Dollar (USD) strength following hotter United States (US) inflation data. USD/JPY climbed toward prior highs as markets priced in additional Federal Reserve (Fed) tightening.

The Swiss Franc (CHF) trades flat against its major currency peers, wobbling around 0.7820 against the US Dollar (USD) during the European trading session on Thursday.

The AUD/JPY cross trades in positive territory near 114.65 during the early European session on Thursday. Traders will closely monitor the outcome of the US President Donald Trump-Chinese President Xi Jinping summit in Beijing later on Thursday and Friday.  

The NZD/USD pair trades marginally under pressure around 0.5935 during the late Asian trading session on Thursday.

The Indian Rupee (INR) holds onto almost week-long losses against the US Dollar (USD) in the opening session on Thursday.

The EUR/JPY cross posts modest gains around 184.90 during the early European session on Thursday. The Euro (EUR) strengthens against the Japanese Yen (JPY) amid hawkish signals by European Central Bank (ECB) officials.

EUR/USD inches higher after three days of losses, trading around 1.1710 during the Asian hours on Thursday. The daily chart technical analysis indicates a potential for a bearish reversal as the pair is positioned on the lower boundary of the ascending channel pattern.

GBP/USD holds ground following three days of losses, trading around 1.3520 during the Asian hours on Thursday. Traders await the preliminary UK Gross Domestic Product (GDP) for the first quarter of 2026, along with Industrial and Manufacturing Production data due later in the day.

Silver price (XAG/USD) loses its daily gains and halts its six-day winning streak, trading around $87.30 per troy ounce during the Asian hours on Thursday. Traders await the meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing.

The AUD/USD pair loses ground to near 0.7250 during the Asian trading hours on Thursday. Hotter-than-expected US inflation data provide some support to the US Dollar (USD) against the Australian Dollar (AUD).

USD/CAD remains calm after six days of gains, trading around 1.3700 during the Asian hours on Thursday. The pair stays silent as the US Dollar (USD) moves little as market caution prevails ahead of a pivotal summit in Beijing between US President Donald Trump and Chinese President Xi Jinping.

The USD/JPY pair trades on a flat note near 157.85 during the early Asian session on Thursday.

The GBP/JPY hovers around 213.50 on Wednesday, finishing the session barely unchanged, up a mediocre 0.04% as the Yen weakened against most G10 FX currencies.