USD/JPY trades modestly higher near 158.20 on Thursday, extending a fourth session of Japanese Yen (JPY) softness as the pair claws back ground lost to last week's coordinated Japan-United States (US) intervention.

The Indian Rupee (INR) has found local support against the US Dollar (USD), with USD/INR easing to around 95.10 following the Reserve Bank of India’s (RBI) decision to hold its benchmark repo rate steady at 5.25% for a fourth consecutive meeting.

ING economists Deepali Bhargava and Lynn Song note that the Indian Rupee (INR) has given back much of its June gains as US–Iran tensions and rising Oil prices hurt sentiment.

EUR/USD trades on the back foot on Thursday, snapping a two-day winning streak as the US Dollar (USD) steadies. Still, the near-term technical picture remains bullish following the late-July rebound from below 1.1400. At the time of writing, the pair trades around 1.1534, down 0.15% on the day.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is effectively flat versus the US Dollar (USD) but modestly outperforming other majors, trading close to their fair value estimate around 1.40.

NZD/USD trades around 0.5880 on Thursday at the time of writing, down 0.10% on the day. The pair remains under pressure as renewed demand for the US Dollar (USD) emerges, with investors seeking safe-haven assets amid fresh geopolitical tensions in the Middle East.

AUD/USD edges lower on Thursday as the US Dollar (USD) steadies following two consecutive days of losses. At the time of writing, the pair trades around 0.7036, down roughly 0.32% on the day.

BNY’s Geoff Yu highlights that Mexican Peso (MXN) carry demand is surging ahead of Banxico’s decision, with MXN the best-bought currency on a weekly basis. However, weak volumes, deteriorating equity flows and only modest sovereign bond demand temper the story.

Rabobank’s Senior FX Strategist Jane Foley notes AUD/USD has trended higher since July, mainly due to a softer US Dollar (USD), with the Australian Dollar (AUD) mid-pack versus G10 peers.

ING’s FX Strategist Francesco Pesole notes Sweden’s core CPIF excluding energy rose to 0.6% in July, giving the Swedish Krona (SEK) a modest boost, while headline inflation slowed as expected.

MUFG notes that USD/JPY remains well below pre-intervention levels. Japanese retail traders entered the episode with a record short position in the pair and likely covered those positions during the intervention-led decline, partially offsetting official yen purchases.

GBP/JPY trades in a narrow range on Thursday, with the British Pound (GBP) modestly outperforming the Japanese Yen (JPY). The Yen stays on the back foot for a third consecutive day, reversing part of the intervention-driven rally that briefly sent GBP/JPY below 210.00 at the start of the week.

OCBC’s Christopher Wong and Sim Moh Siong highlight that the Reserve Bank of India's (RBI) decision to hold the repo rate at 5.25% while lowering inflation forecasts and nudging growth higher, alongside strong capital inflows, has put India’s balance of payments on track for a healthy surplus.

BNY’s Geoff Yu reports that S&P has affirmed Australia’s AAA rating with a stable outlook, citing strong institutions and modest public debt. The agency expects deficits to remain contained and net debt to stabilize over the forecast horizon.

The Euro (EUR) trades marginally lower at around 1.1545 against the US Dollar (USD) during the European trading session on Friday. The major currency pair edges down as the US Dollar ticks up, while investors shift their focus to the United States (US) Nonfarm Payrolls (NFP) data release on Friday.

The British Pound (GBP) holds marginal losses against the US Dollar (USD) on Thursday, trading at 1.3460 at the time of writing, down from Wednesday's highs at 1.3486.

Rabobank's Senior Macro Strategist Bas van Geffen discusses renewed Japanese Yen (JPY) weakness following recent joint US-Japan FX intervention that briefly pushed USD/JPY below 156.

The Japanese Yen (JPY) is ticking lower against the US Dollar (USD) on Thursday, trimming gains after an exceptional US-Japan coordinated intervention triggered a 4.5% appreciation late last week.

Commerzbank’s Charlie Lay reports that the Reserve Bank of India kept the repo rate at 5.25% for a fourth meeting, maintaining a neutral stance. RBI sees recent inflation overshoot as supply-driven and trimmed its FY2026-2027 inflation forecast while lifting growth to 6.7%.

Societe Generale’s Dev Ashish notes that the central bank of the Brazil, Banco Central do Brasil (BCB) cut the Selic rate by 25bp to 14.0% as expected, extending a 100bp easing cycle since March.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight USD/JPY traded quietly between 157.27 and 157.87, closing at 157.74, with intraday momentum indicators flat. The pair is expected to stay in a 157.30–158.20 band near term.

Eurozone Retail Sales contracted at a 0.3% pace Month-on-Month (MoM) in June, while they were anticipated to have risen moderately by 0.1% from 0.2% in May.

The AUD/JPY cross attracts some sellers on Thursday, snapping a two-day winning streak and stalling this week's solid bounce move from its lowest level since late March.

The Euro (EUR) clings to two-day gains against the Japanese Yen (JPY) at around 182.25 during the European trading session on Thursday.

USD/CAD loses ground for the second successive day, trading around 1.4010 during the European hours on Thursday.

The Euro (EUR) nudges lower against the British Pound (GBP) on Thursday, following a three-day rally. The EUR/GBP remains capped below the late-July top of 0.8586, trading at 0.8575 at the time of writing, yet with downside attempts subdued so far. 

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report GBP/USD edged higher to 1.3469 after briefly touching 1.3486, with short-term momentum only slightly firmer. The pair is expected to trade in a higher 1.3445–1.3495 range rather than embark on a strong rally.

Here is what you need to know on Thursday, August 6:

The USD/CHF pair attracts some buyers near the 0.8060 region on Thursday amid a modest US Dollar (USD) uptick. Spot prices, for now, seem to have snapped a two-day losing streak and trade around the 0.8080-0.8085 region during the first half of the European session, up nearly 0.15% for the day.

The Australian Dollar (AUD) posts moderate losses against the US Dollar (USD) on Thursday, retreating to the 0.7040 area from three-week highs at 0.7064 on Wednesday.