The US Dollar (USD) posted decent gains, enough to maintain its optimism unchanged so far this year. Meanwhile, market participants remained cautious ahead of the release of the critical US labour market report at the end of the week.

The Canadian Dollar (CAD) remains on the defensive against the US Dollar (USD) on Thursday, pressured by broad-based Greenback strength. At the time of writing, USD/CAD trades around 1.3875, hovering near its highest level since December 5.

AUD/USD extends its pullback and trades around 0.6690 on Thursday at the time of writing, down 0.40% on the day, after posting a more-than-one-year high on the previous day.

The Pound Sterling falls for the third straight day, down some 0.10% as US jobs data has revealed that the labor market is healthier than expected, weighing on expectations of Fed rate cuts ahead in the year. At the time of writing, the GBP/USD trades at 1.3444 after reaching a daily high of 1.3465.

The Swiss Franc (CHF) trades marginally higher against the US Dollar (USD) on Thursday, as markets weigh firm US weekly labour-market data against a modest pick-up in Swiss inflation. At the time of writing, USD/CHF trades around 0.7991, hovering near its highest level since December 11.

The Japanese Yen (JPY) trims earlier gains against the US Dollar (USD) on Thursday, as the Greenback strengthens broadly following the latest US economic releases. At the time of writing, USD/JPY trades around the 157.00 mark, pushing higher for a third consecutive day.

NZD/USD trades lower and holds around 0.5750 on Thursday at the time of writing, extending a negative trend seen over recent days. The pair reflects a weakening New Zealand Dollar (NZD), a risk-sensitive currency, as investors remain cautious.

The Japanese Yen (JPY) remains incredibly quiet as it extends the tight consolidation that we’ve observed over the past couple of weeks, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Pound Sterling (GBP) is soft and down a fractional 0.1% vs. the US Dollar (USD), extending its modest pullback from Tuesday’s multi-month high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Euro (EUR) is entering Thursday’s NA session unchanged vs. the US Dollar (USD) as it consolidates its recent pullback within the flat range from June, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Canadian Dollar (CAD) has leaked steadily lower so far this week, extending its post-Christmas slide to the upper 1.38s, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Euro (EUR) edges lower against the US Dollar (USD) on Thursday, with EUR/USD extending its slide as the Greenback builds on recent gains following the release of US weekly labour-market data.

AUD/USD has led G10 currencies year-to-date, supported by speculation that the RBA could be the first to hike rates, though recent comments from Deputy Governor Hauser suggest a more cautious approach.

Market participants who held onto the Japanese Yen (JPY) were probably glad to see the end of the year, once again. The Yen managed to gain ground against the weak US dollar in 2025 by a small margin.

The Euro (EUR) trades little changed against the Swiss Franc (CHF) on Thursday, with markets digesting fresh economic data from Switzerland and the Eurozone. At the time of writing, EUR/CHF is trading around 0.9313, snapping a two-day winning streak.

The US Dollar is trading firm against its Canadian counterpart on Thursday, rallying for the fifth consecutive day, to reach a four-week high at 1.3888.

Brazil Industrial Output (YoY) below expectations (-0.1%) in November: Actual (-1.2%)

Brazil Industrial Output (MoM) came in at 0%, below expectations (0.2%) in November

The USD/JPY pair trades in a tight range around 156.70 during the European trading session on Thursday. The pair consolidates as investors shift focus to the United States (US) Nonfarm Payrolls (NFP) data for December, which will be released on Friday.

USD/CHF is holding near the middle of its 0.7900–0.8100 range as Swiss inflation prints came in line with expectations, BBH FX analysts report.

EUR/USD is trading lower near 1.1670 as the ECB’s latest consumer survey shows inflation expectations holding steady, supporting the case for rates to remain at 2.00%, BBH FX analysts report.

USD/JPY remains directionless near this week’s high as November labor cash earnings in Japan came in well below expectations, while full-time pay growth also eased.

US Dollar (USD) is likely to range-trade between 156.30 and 157.05. In the longer run, USD is likely to trade in a range between 155.60 and 157.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

For several months now, a topic that had been somewhat overshadowed in recent years by episodes of increased inflation and recurring concerns about growth and public finances has resurfaced in British politics: Brexit.

The AUD/USD pair retraces further to near 0.6690 during the European trading session on Thursday from its over-a-year high of 0.6766 posted the previous day.

EUR/JPY trades around 183.00 on Thursday at the time of writing, virtually unchanged on the day, as relative support for the Japanese Yen (JPY), driven by expectations of monetary policy normalization in Japan, meets mixed European macroeconomic data released earlier today.

The Euro appreciates for the third consecutive day against a weaker British Pound on Thursday, approaching 0.8700, fuelled by upbeat Eurozone sentiment data and an unexpected decline in the region’s jobless rate.

NZD/USD is likely to trade in a range between 0.5740 and 0.5825, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Eurozone Business Climate up to -0.56 in December from previous -0.66

Eurozone Producer Price Index (YoY) above forecasts (-1.9%) in November: Actual (-1.7%)