The Japanese Yen (JPY) shows a moderate pullback on Friday, despite the broad-based US Dollar (USD) weakness, following the US Treasury’s plan to double buybacks of long-term Government debt.

Geoff Yu at BNY Mellon highlights that foreign investors are accelerating Japanese Government Bond selling while Japanese investors increase purchases of overseas bonds and equities. This flow mix weakens support for the Japanese Yen and points to further depreciation.

Brown Brothers Harriman’s (BBH) Elias Haddad notes AUD/USD is holding gains on broad US Dollar weakness despite a soft July Australian labor report. The economy unexpectedly lost jobs, with rising unemployment and falling hours worked pointing to weaker labor demand.

The Euro (EUR) extends gains against an ailing US Dollar (USD) on Thursday, as the US Treasury’s plan to boost buybacks of long-term Government Bonds sent the Greenback tumbling across the board.

EUR/GBP trades around 0.8580 on Thursday at the time of writing, showing little change on the day.

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann highlight that EUR/USD has broken to a three‑month high near 1.1680 as Dollar weakness and strong momentum underpin the pair.

The Euro (EUR) posts a fresh three-month high at around 1.1693 against the US Dollar (USD) during the European trading session on Thursday.

NZD/USD extends its gains for the second successive day, trading around 0.5950 during the European hours on Thursday. The pair appreciates as the New Zealand Dollar (NZD) gains on expectations of another rate hike from the Reserve Bank of New Zealand (RBNZ) in September.

Here is what you need to know on Thursday, August 20:

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann note AUD/USD retested recent highs near 0.7130 but momentum has not strengthened markedly.

The Japanese Yen (JPY) is down against its major currency peers on Thursday, with USD/JPY trading 0.22% higher at around 158.50 during the European trading session. The Japanese currency underperforms as the Trade Deficit widens due to elevated energy prices.

The Australian Dollar (AUD) remains under pressure against its major currency peers during the early European trading session on Thursday. As of writing, the antipodean is down 0.17% to near 0.7110 against the US Dollar (USD).

The USD/CAD pair declines to around 1.3790 during the early European trading hours on Thursday. The US Dollar (USD) weakens against the Canadian Dollar (CAD) as cooling US inflation dampens aggressive US Federal Reserve (Fed) policy expectations.

Silver (XAG/USD) is practically flat on Thursday, holding most of Wednesday’s gains, trading just above $67.00 at the European session opening.

OCBC strategists Sim Moh Siong and Christopher Wong note Indian Rupee (INR) remains under pressure despite broader US Dollar (USD) weakness, as high Oil prices and importer Dollar demand weigh on the currency.

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann report that GBP/USD spiked to 1.3630 before easing, leaving short‑term conditions overstretched.

The EUR/JPY cross gathers strength to around 185.20 during the early European session on Thursday. The Japanese Yen (JPY) softens against the Euro (EUR) amid disappointing Japanese Gross Domestic Product (GDP) data.

Danske Research Team notes that EUR/USD jumped after the US Treasury increased buyback volumes of longer-dated US Treasuries, flattening the bond curve and pulling the 10-year yield below Tuesday’s peak.

The GBP/USD pair trades in positive territory around 1.3610 during the early European trading hours on Thursday.

USD/CHF gains ground after registering handsome losses in the previous day, trading around 0.8000 during the Asian hours on Thursday. The USD/CHF pair continues to hold its gains as the Swiss Franc (CHF) remains under pressure ahead of the upcoming domestic Trade Balance report.

The Indian Rupee (INR) snaps three-day losing streak against the US Dollar (USD) on Thursday.

The EUR/USD pair enters a bullish consolidation phase after touching its highest level since late May during the Asian session on Thursday. Bulls now await a move beyond the 1.1700 mark before placing fresh bets and positioning for an extension of an over a three-week-old uptrend.

USD/CAD extends its losses for the second successive day, trading around 1.3800 during the Asian hours on Thursday. The pair declines as the commodity-linked Canadian Dollar (CAD) receives support from improved oil prices.

The NZD/USD pair gains momentum to near 0.5950 during the Asian trading hours on Thursday. The pair holds near a two-and-a-half-month high, bolstered by hawkish Reserve Bank of New Zealand (RBNZ) tone and softer US inflation data.  

AUD/USD depreciates after registering over 0.5% gains in the previous day, trading around 0.7120 during the Asian hours on Thursday. The AUD/USD pair faces downward pressure as the Australian Dollar (AUD) slips in response to a weak domestic labor market report.

The AUD/JPY cross attracts some sellers following the release of a dismal Australian jobs report, though it lacks follow-through and holds above the weekly low touched the previous day.

The GBP/USD pair edges lower during the Asian session on Thursday and retreats further from its highest level since May 11, touched the previous day.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 6.7808 compared to the previous day's fix of 6.7854 and 6.7196 Reuters estimate.

The EUR/USD pair posts modest losses around 1.1675 during the early Asian session on Thursday. The Euro (EUR) edges lower against the US Dollar (USD) after experiencing a sharp surge in the previous session.

The Aussie Dollar advances on Wednesday, up over 0.56%, as the US Dollar registers losses amid the US Treasury bond buyback and despite the release of hawkish Federal Reserve minutes from the July meeting. The AUD/USD trades at 0.7127.