AUD/JPY tumbles on Thursday as a sudden surge in the Japanese Yen (JPY) sweeps across Yen crosses, fuelling speculation that Japanese authorities intervened to support the currency after USD/JPY hit a 40-year high earlier this month.

AUD/USD trades around 0.7010 on Thursday at the time of writing, up 0.82% on the day as broad-based US Dollar (USD) weakness outweighs the negative impact of softer Australian inflation.

The GBP/JPY cross trades sharply lower near 213.20 on Thursday, losing around 2.4% as a sudden surge in the Japanese Yen (JPY) overwhelms the British Pound’s reaction to the Bank of England’s (BoE) monetary policy announcement.

EUR/JPY plunges on Thursday, down 2.26% on the day to trade around 183.10 at the time of writing, after a sudden surge in the Japanese Yen (JPY) triggered by what appears to be another intervention by Japanese authorities in the foreign exchange market.

EUR/USD extends its gains on Thursday as the Greenback remains under pressure as traders digest a busy batch of US economic data after the Federal Reserve (Fed) left interest rates unchanged at 3.50%-3.75% on Wednesday.

USD/JPY trades around 162.90 at the time of writing on Thursday, down 0.31% on the day, as the US Dollar (USD) comes under pressure following the Federal Reserve (Fed) meeting on Wednesday and a series of weaker-than-expected United States (US) economic data released earlier in the day, ahead of the

Tatha Ghose at Commerzbank flags Fitch’s latest review of Turkish banks as another negative signal for the Lira. Profitability has weakened after regulatory changes on FX risk-weighted assets, with capital ratios lower and margins squeezed by prior rate cuts and high costs.

TD Securities FX strategist Howard Du highlights that GBP/USD initially rose 0.3% on the hawkish 6-3 BoE vote split, with Mann joining the hike camp. However, the rest of the committee appears comfortable holding rates given limited second-round effects.

BNY’s Geoff Yu reports that Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter described Australia’s Consumer Price Index (CPI) as slightly softer than expected, mainly due to fuel prices, but stressed inflation remains above the 2–3% band.

Brown Brothers Harriman’s (BBH) Elias Haddad notes the New Zealand Dollar (NZD) is stronger against major currencies, with local bonds underperforming as domestic data improve.

EUR/GBP trades almost flat on Thursday, hovering close to its highest level in nearly a month as the British Pound (GBP) modestly outperforms the Euro (EUR) following the Bank of England’s (BoE) monetary policy decision.

Brown Brothers Harriman’s (BBH) Elias Haddad reports EUR/USD is consolidating after a rally driven by stronger-than-expected Eurozone Q2 GDP at 0.4% quarter-on-quarter.

The British Pound (GBP) drops against its major currency peers after the Bank of England’s (BoE) monetary policy decision. The GBP/USD pair edges lower from its intraday high of 1.3405 to near 1.3380; however, the initial reaction from the pair was slightly positive.

Societe Generale strategists analyzes- the Bank of England’s (BoE) upcoming meeting, expecting Bank Rate to remain at 3.75% with some hawkish dissent. They note easing inflation expectations and a loosening labour market, but also higher energy prices and government income support.

Rabobank Senior FX Strategist Jane Foley discusses GBP/USD following the latest Federal Reserve (Fed) decision and ahead of the Bank of England (BoE) meeting. She expects GBP/USD to trade around 1.32–1.33 over the next one to three months.

Commerzbank’s Volkmar Baur expects the Bank of Japan to keep its overnight call rate unchanged, as fully priced by markets. The focus is on guidance, with inflation around 2% and leading indicators pointing higher.

The Euro (EUR) claws back its early losses and turns almost flat against the Japanese Yen (JPY) after the release of preliminary German Q2 Gross Domestic Product (GDP) and inflation data for its six states.

The USD/CAD pair attracts some buyers on Thursday and, for now, seems to have snapped a two-day losing streak to a more than one-week low, around the 1.4025-1.4020 area touched the previous day.

According to Eurostat, Eurozone Gross Domestic Product (GDP) growth turns positive in the second quarter this year after declining 0.2%  in the previous quarter. The GDP growth arrives at 0.4%, faster than estimates of 0.2%.

The GBP/USD pair meets with fresh supply on Thursday and retreats further from the weekly high, around the 1.3385-1.3390 region, touched the previous day.

The Euro (EUR) nudges down against the US Dollar (USD) on Wednesday, despite a mild uptick following stronger-than-expected German Gross Domestic Product (GDP) data.

Chris Turner at ING writes that EUR/USD bounced modestly after the FOMC but was constrained by higher long-dated US yields and pressure on US growth stocks.

The Swiss Franc (CHF) remains on the defensive against the US Dollar (USD) Thursday despite the unexpected improvement of Swiss leading indicators.

MUFG's Derek Halpenny notes that the British Pound (GBP) has been the strongest G10 currency after the US Dollar (USD) since the Middle East conflict began, with attention now on the Bank of England’s (BoE) July decision.

The AUD/USD pair struggles to capitalize on the previous day's late rebound from the 0.6920 region, or an over two-week low, and seesaws between tepid gains/minor losses through the early European session on Thursday.

The NZD/USD pair gathers strength to near 0.5810 during early European trading hours on Thursday, bolstered by the Reserve Bank of New Zealand (RBNZ) rate hike bets.

The USD/JPY pair trades 0.1% higher at around 163.60 during the European trading session on Thursday. The pair rises as the US Dollar (USD) regains ground due to intensifying military aggression between the United States (US) and Iran.

Here is what you need to know on Thursday, July 30:

Commerzbank’s FX Research team, including Charlie Lay and colleagues, notes that the Dollar Index fell and EUR/USD climbed after the Federal Reserve left rates unchanged but revealed a significant internal split.

The Euro (EUR) has eased from fresh four-week highs at 0.8585 against the British Pound (GBP) on Thursday, but maintains its bullish trend intact with price action standing above previous highs.