Michael Pfister highlights that comments from the US Treasury Secretary about having “asymmetric information” on Bank of Japan (BoJ) moves are intended to deter speculative positioning for further Japanese Yen (JPY) weakness.

The Canadian Dollar (CAD) trades sideways at around 1.3810 against the US Dollar (USD) during the European trading session on Thursday. The Loonie pair consolidates as investors await the United States (US) Producer Price Index (PPI) data for August, which will be published at 12:30 GMT.

The Euro (EUR) edges up against the US Dollar (USD) on Thursday, but remains capped below Wednesday’s highs, at the 1.1650 area so far.

The GBP/USD pair gains traction to near 1.3555 during the early European session on Thursday, bolstered by a weaker US Dollar (USD). Markets might turn cautious later in the day ahead of the release of the US Producer Price Index (PPI) data. 

The Japanese Yen (JPY) holds onto an over-a-week-long upside run against the US Dollar (USD) on Thursday. As of writing, the USD/JPY pair trades marginally lower to near 153.45 and is close to its over six-month low at 152.89 posted on Wednesday.

The AUD/JPY cross loses momentum to near 110.75 during the early European session on Thursday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) amid rising expectations of a near-term interest rate hike by the Bank of Japan (BoJ). 

The Indian Rupee (INR) extends its losing run against the US Dollar (USD) for the third trading day on Thursday. The USD/INR pair posts a fresh 10-day high at 95.31 as the ongoing rally in oil prices continues to batter the Indian currency.

EUR/JPY remains steady after three days of losses, trading around 178.60 during the Asian hours on Thursday. Technical analysis of the daily chart indicates the currency cross remains within the descending channel pattern, signalling a bearish bias.

The AUD/USD pair holds steady above the 0.7200 mark through the Asians session on Thursday and remains close to its highest level since May 14, touched earlier this week.

USD/CHF loses ground after registering gains in the previous day, trading around 0.8090 during the Asian hours on Thursday.

The EUR/USD pair attracts some dip-buyers during the Asian session on Thursday, though it lacks follow-through as traders seem hesitant ahead of the European Central Bank (ECB) meeting and the US Producer Price Index (PPI).

The NZD/USD pair gathers strength to around 0.5845 during the early Asian session on Thursday, bolstered by a softer US Dollar (USD). All eyes will be on the upcoming Producer Price Index (PPI) data due on Thursday. 

The USD/CAD pair struggles to capitalize on the previous day's modest gains and consolidates just above the 1.3800 mark during the Asian session on Thursday. Traders seem hesitant and opt to wait for the release of US inflation figures before placing fresh directional bets.

The USD/JPY pair edges higher during the Asian session on Thursday and trades just above mid-153.00s amid bears turn cautious ahead of US inflation figures.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 6.7766 compared to the previous day's fix of 6.7769 and 6.7074 Reuters estimate.

A Reuters poll showed the Bank of Japan (BoJ) will hike interest rates to 1.25% at its September policy meeting and then to 1.75% in the second quarter (Q2) of 2027, earlier than previously expected, amid persistent concerns over broadening price pressures and Japanese Yen (JPY) weakness.

The Australian Dollar is virtually unchanged against the US Dollar on Wednesday amid a light economic calendar, with the US Treasury's announcement of a buyback for the September 10 auction boosting the Greenback. The AUD/USD trades at 0.7219, flat.

The real tension weighing on GBP/USD is a rate parity that masks a divergence. Both central banks sit at 3.75%.

GBP/JPY falls for the third straight day, but it fails to register a lower low, an indication that buyers are stepping in but lack the strength to push the exchange rate past Wednesday’s opening price, leaving the pair near this week's lows. The cross-pair trades at 208.05, down 0.22%.

DBS Group Research’s Chang Wei Liang notes that USD/KRW has fallen toward 1340 in a steady decline since late June, reflecting earlier optimism on the Korean Won from a booming memory sector and strong investment plans.

The New Zealand Dollar extends its losses against the US Dollar, down 0.30% as the Greenback gets underpinned by rising US Treasury yields, with the 10-year reaching its highest level since 2023. The NZD/USD trades at 0.5835.

The Mexican Peso clings to gains against the US Dollar on Wednesday following the presentation of Mexico’s government fiscal package in Congress, while traders await the release of US inflation data. The USD/MXN trades at 16.89, down 0.09% near yearly lows.

EUR/USD struggles to extend its earlier gains on Wednesday as the US Treasury’s bond-buyback announcement sparks a brief bout of volatility, pushing Treasury yields higher and helping the US Dollar (USD) trim its losses.

The US Dollar (USD) has navigated a bearish range on Wednesday, gathering some pace soon after the US Treasury announced a buyback of up to $6 billion in 10- to 20-year T-bonds.

AUD/USD stabilizes around 0.7220 at the time of writing on Wednesday, after hitting a fresh four-month high at 0.7237 earlier in the day. The Australian Dollar (AUD) loses some momentum as the US Dollar (USD) rebounds, supported by rising US Treasury yields.

USD/JPY remains on the back foot on Wednesday but lacks follow-through selling as the US Dollar (USD) recovers following the Treasury’s announcement of a larger bond buyback. The pair trades around 153.50 after briefly falling below 153.00, its lowest level since February.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight ongoing Japanese Yen (JPY) outperformance, with USD/JPY drifting toward key support near 153 and the 2026 low around 152. Markets fully price a 25 bp Bank of Japan (BoJ) hike on September 18.

The Pound Sterling advances on Wednesday during the North American session, up 0.15% at 1.3560, with no clear catalyst behind the move, as the conflict in the Middle East prolongs, while traders brace for US inflation data release.

Rabobank’s Mauricio Une and Renan Alves note the Brazilian Real (BRL) appreciated 1.26% against the Dollar over the past week, with USD/BRL around 5.13.

USD/CHF edges lower on Wednesday as broad weakness in the US Dollar (USD) allows the Swiss Franc (CHF) to regain some ground. At the time of writing, the pair trades around 0.8078, down roughly 0.20% on the day.