The Pound Sterling tumbles on Thursday, down 0.36% in the day as risk aversion boosted the safe-haven appeal of the Japanese Yen. Renewed AI disruption fears sent Wall Street plunging, while haven assets like Gold, Silver and the US Dollar failed to gain traction.

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair.

The Japanese Yen strengthened past 153 per US Dollar on Thursday, rising for the fourth straight session after Prime Minister Sanae Takaichi's decisive general election victory on February 8 gave her a clear mandate to pursue expansionary fiscal policy.

The New Zealand Dollar firmed to around 0.6057, its highest level in two weeks, as markets assessed the Reserve Bank of New Zealand's (RBNZ) policy outlook ahead of its February 18 Monetary Policy Statement.

The Australian Dollar rallied to a fresh three-and-a-half-year high above 0.7140 this week after the Reserve Bank of Australia (RBA) reinforced its hawkish stance.

The Swiss Franc continued to appreciate versus the Greenback on Thursday, following a slightly soft US jobs report overshadowed by Wednesday’s Nonfarm Payrolls print. Despite this, the Greenback, has failed to rally and USD/CHF trades at 0.7700 down 0.22%.

The Japanese Yen (JPY) trades on the front foot against the US Dollar (USD) on Thursday, with USD/JPY extending its decline for a fourth straight day, driven by Japan’s election outcome and ongoing intervention concerns.

The Euro (EUR) regains some lost ground against the US Dollar (USD) on Thursday, with EUR/USD snapping a two-day losing streak as the Greenback struggles to attract a meaningful recovery. At the time of writing, EUR/USD is trading around 1.1883, up about 0.10%.

The Pound Sterling rallies during the North American session versus the US Dollar, after the jobs data in the US, contradicts a stellar Nonfarm Payrolls report released a day ago. Meanwhile, the UK economy grew weaker than expected, yet the British Pound continues to trade with gains.

BNY’s EMEA Macro Strategist Geoff Yu notes that the Japanese government remains highly vigilant on foreign exchange despite recent Japanese Yen gains, with USD/JPY moving toward 153 after stronger U.S. payrolls pushed back Federal Reserve rate-cut expectations.

Scotiabank analysts Shaun Osborne and Eric Theoret note the Euro is stabilizing after a minor NFP-driven setback, with improving yield spreads and recovering correlations pointing back to fundamentals.

AUD/USD trades around 0.7140 on Thursday at the time of writing, up 0.21% on the day, after briefly reaching a three-year high at 0.7147.

The Canadian Dollar (CAD) trades little changed against the US Dollar (USD) on Thursday, as growing uncertainty around North American trade ties keeps investors cautious. At the time of writing, USD/CAD is hovering near 1.3571, with a broadly softer Greenback limiting upside in the pair.

BNY’s EMEA Macro Strategist Geoff Yu highlights that RBA Governor Michele Bullock signaled further rate hikes are possible if Australian inflation remains entrenched, with expectations and productivity trends worrying policymakers.

Rabobank’s Senior FX Strategist Jane Foley argues that earlier assumptions about Prime Minister Takaichi’s fiscal and monetary stance are being reassessed, reducing pressure on the Bank of Japan to stay ultra‑dovish.

Germany Current Account n.s.a. rose from previous €15.1B to €16.1B in December

EUR/GBP trades in a narrow range on Wednesday, with the British Pound (GBP) holding firm despite soft UK economic data, as broad-based US Dollar (USD) weakness continues to shape overall FX sentiment.

OCBC’s FX strategists Sim Moh Siong and Christopher Wong note that hawkish comments from RBA Deputy Governor Hauser have supported the Australian Dollar, even as lower Australian bond yields show rates markets remain cautious.

USD/CHF falls toward 0.7680 on Thursday at the time of writing, down 0.48% on the day, after two consecutive days of gains. The pair remains under pressure as the Swiss Franc (CHF) benefits from sustained safe-haven demand and rising domestic yields.

The Pound (GBP) lost ground against its main peers on Thursday, following a string of disappointing UK economic indicators. The GBP/USD pair, however, has remained steady above 1.3600 and is picking up to 1.3640 at the time of writing, keeping a mild upside trend from last week’s lows intact.

The US Dollar (USD) has found footing in the lower range of the 152.00s against the Japanese Yen (JPY) and is consolidating around 153.00 on Thursday.

The Euro (EUR) is attempting to find a bottom against the Japanese Yen (JPY) on Thursday, after dropping sharply over the previous three days. The pair has pared daily losses, and trades at 181.70 at the time of writing, up from six-week lows at 180.85.

MUFG’s Senior Currency Analyst Lee Hardman highlights that the Canadian Dollar has underperformed after stronger US data, lagging other high-beta currencies as USMCA renegotiation risk resurfaces.

NZD/USD extends its gains for the second successive session, trading around 0.6060 during the European hours on Thursday.

Silver (XAG/USD) posts marginal losses on Thursday, trading near $83.70 at the time of writing, yet with the $ 86.30 weekly high at a short distance and the immediate bullish trend intact.

USD/CAD remains in the positive territory after registering modest gains in the previous session, trading around 1.3580 during the European hours on Thursday. The technical analysis of the daily chart shows the pair remains within the descending channel pattern, suggesting a persistent bearish bias.

OCBC’s FX strategists Sim Moh Siong and Christopher Wong note that the Japanese Yen has strengthened alongside post-election rallies in Japan’s bond and equity markets, helped by easing fiscal concerns.

The Aussie Dollar (AUD) pulled back from three-year highs at 0.7147 as the US Dollar (USD) picked up following upbeat US Nonfarm Payrolls data.

Scotiabank’s Analyst Team reports the Euro is modestly higher versus the Dollar but lagging other G10 currencies, with sentiment and options pricing favouring upside protection.

Here is what you need to know on Thursday, February 12: