Georgette Boele at ABN AMRO highlights that both the Euro and Sterling have fallen about 0.9% against the US Dollar since mid-May, driven by energy markets and bond yields.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights USD/JPY trading around 159.00, with expectations it should stay below 160.00 given intervention risks and a more hawkish Bank of Japan (BoJ).

BNY’s Bob Savage explains that the United Kingdom (UK) government’s targeted cost-of-living package seeks to cushion households from Iran-related energy shocks while avoiding a repeat of large-scale bailouts.

The British Pound (GBP) weakens against the Japanese Yen (JPY) on Thursday as traders digest the latest preliminary PMI data from both the United Kingdom and Japan. At the time of writing, GBP/JPY is trading around 213.40, hovering near one-week highs.

Brown Brothers Harriman’s (BBH) Elias Haddad notes GBP/USD is consolidating near 1.3440 but warns that a likely downward repricing of the UK swaps curve and a potential further leftward pivot by a Labour government could undermine the Pound.

DBS FX & Credit Strategist Chang Wei Liang writes that USD/JPY is consolidating around 159 as markets remain wary of potential intervention and hesitate to test 160.

MUFG’s Lee Hardman highlights a strong recovery in the Pound and gilts as UK fiscal and inflation concerns ease. GBP/USD has bounced toward the 200-day moving average, while long gilt yields have fallen sharply.

The Euro (EUR) nurses moderate losses against the US Dollar (USD) on Thursday, although it remains within the last few days' range, changing hands at 1.1610 at the time of down from session highs at 1.1635.

ING’s Francesco Pesole says weak Australian labour data and grim PMIs support a cautious Reserve Bank of Australia (RBA) stance and dampen expectations for further tightening.

Societe Generale analysts note EUR/USD is lacking clear direction as it trades around its 200‑DMA and approaches an ascending trend line from February 2025. The pair faces resistance near 1.1750/1.1800 and support around 1.1500–1.1390.

The British Pound is down 0.13% to near 1.3415 against the US Dollar (USD) during the European trading session on Thursday.

NZD/USD moves little after registering modest gains in the previous day, trading around 0.5870 during the European hours on Thursday. The technical analysis of the daily chart signals an ongoing bearish bias as the pair remains within the descending channel pattern.

Eurozone Construction Output s.a (MoM) rose from previous -0.2% to 0.8% in March

Eurozone Construction Output w.d.a (YoY) rose from previous -1.9% to -1.2% in March

S&P Global will release the May flash Purchasing Managers' Indices (PMIs) for most major economies, including the United States (US), on Thursday. These surveys of top private sector executives are seen as an early indicator of the country’s economic health.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann say USD/JPY’s uptrend is losing steam after the pair failed to extend gains beyond 159.25 and posted its first daily decline in seven sessions.

The Euro (EUR) trades marginally lower against the US Dollar (USD) on Thursday, yet within the last few days’ range, changing hands at 1.1615 at the time of writing.

Eurozone HCOB Composite PMI below forecasts (48.8) in May: Actual (47.5)

Eurozone HCOB Services PMI came in at 46.4, below expectations (47.7) in May

Eurozone HCOB Manufacturing PMI below forecasts (51.9) in May: Actual (51.4)

The British Pound (GBP) is trading practically flat against the Japanese Yen (JPY) on Thursday, right below one-week highs around 213.70.

Danske Research Team argues that greater certainty in energy markets could actually increase near-term rate-hike odds from the Bank of Japan (BoJ).

Germany HCOB Services PMI above expectations (47) in May: Actual (47.8)

Germany HCOB Composite PMI came in at 48.6, above expectations (48.4) in May

Germany HCOB Manufacturing PMI registered at 49.9, below expectations (51) in May

The Swiss Franc (CHF) is trading flat against the US Dollar (USD) on Thursday, so far unfazed by the sharp decline in Swiss Industrial Production.

USD/JPY remains subdued for the second successive day, trading around 158.90 during the early European hours on Thursday. The currency pair is holding a constructive bullish bias as spot remains above both the nine-day and 50-day Exponential Moving Averages (EMAs).

France HCOB Manufacturing PMI came in at 48.9, below expectations (52.5) in May

France HCOB Composite PMI below expectations (47.7) in May: Actual (43.5)

France HCOB Services PMI came in at 42.9 below forecasts (46.5) in May