USD/CHF weakens sharply on Thursday as the US Dollar (USD) comes under broad selling pressure following a weaker-than-expected US Nonfarm Payrolls (NFP) report. At the time of writing, the pair is trading around 0.8029, its lowest level since June 18, down nearly 0.80% on the day.

AUD/JPY declines by 0.61% on Thursday, trading around 111.40 at the time of writing.

Dev Ashish at Societe Generale notes that MXN price action was relatively muted after the United States-Mexico-Canada Agreement (USMCA) extension decision, indicating investors largely expected the outcome.

GBP/JPY trades under pressure on Thursday as the Japanese Yen (JPY) strengthens across the board amid speculation that Japanese authorities may have intervened in the foreign exchange market after the Yen fell to a 40-year low against the US Dollar (USD) earlier this week.

The Euro (EUR) accelerated its decline against a strong Japanese Yen (JPY), which has rallied across the board on Thursday, without any clear reason to explain the move.

BNY’s Geoff Yu notes that iFlow data show clients turning underweight Japanese Yen (JPY) for the first time since Q4 2024, as USD/JPY’s climb and intervention fears had kept hedge ratios low.

NZD/USD trades higher around 0.5680 on Thursday at the time of writing, up 0.16% on the day, as investors reduce their exposure to the US Dollar (USD) ahead of the release of the US Nonfarm Payrolls (NFP) report.

The Euro (EUR) trades higher on Thursday against the US Dollar (USD) as traders trim USD longs ahead of the US Nonfarm Payrolls report, due later on the day.

The British Pound (GBP) trades 0.5% higher to near 1.3340 against the US Dollar (USD) during the European trading session on Thursday.

EUR/GBP trades around 0.8550 on Thursday, down 0.21% on the day, as the Euro (EUR) remains under pressure against the British Pound (GBP) after another batch of data reinforced expectations of a more cautious European Central Bank (ECB).

The Japanese Yen (JPY) staged a sharp rebound against the US Dollar (USD) on Friday, raising speculation about potential action by the Japanese Ministry of Finance (MoF).

Societe Generale highlights that state-controlled banks in India have been actively selling Dollars for a second day after USD/INR briefly moved above its 50-day moving average.

Volkmar Baur at Commerzbank highlights solid Japanese activity data, with the manufacturing PMI at 54.8 and the Tankan business conditions index at its highest since 2003.

Societe Generale strategists highlight that EUR/GBP has completed a Head and Shoulders pattern and broken below its neckline around 0.8610, now seen as initial resistance.

Eurozone Unemployment Rate came in at 6.2%, below expectations (6.3%) in May

USD/CAD has lost its recent gains from the previous day, trading around 1.4190 during the European hours on Thursday. Traders adopt a cautious stance ahead of the highly anticipated June Nonfarm Payrolls (NFP) report.

Chris Turner at ING highlights softer Eurozone inflation and questions over a September ECB hike, with 15bp still priced but subsidies expiry possibly lifting prices later.

The Australian Dollar (AUD) remains practically flat against the US Dollar (USD) on Thursday, consolidating losses after having depreciated nearly 4% in June. The AUD/USD pair is trading within a broadly 65-pip range, with downside attempts contained at 0.6865 and bulls limited below 0.6930 so far.

The EUR/USD pair builds on its intraday ascent and reclaims the 1.1400 mark during the early part of the European session on Thursday, reversing a major part of the overnight losses to the weekly low.

Here is what you need to know on Thursday, July 2:

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The Euro (EUR) is down almost 0.5% to near 184.00 against the Japanese Yen (JPY) during the European trading session on Thursday. The EUR/JPY pair slumps as the Japanese Yen (JPY) delivers a sudden strong upside move, which appears to be the outcome of Japan’s intervention.

The British Pound (GBP) has spiked lower against the Yen (JPY) in Thursday’s early European session, with no clear reason to explain the move, triggering speculation of some action by the Japanese Ministry of Finance.

ING’s Chris Turner reports that EUR/GBP has broken below the 0.8600/8610 support, triggering liquidation of expensive, stale Sterling shorts, especially among asset managers.

NZD/USD has recovered its recent losses from the previous day, trading around 0.5680 during the early European hours on Thursday.

The USD/JPY pair comes under intense selling pressure and plummets to the 161.00 neighborhood heading into the European session on Thursday, snapping a three-day winning streak to the highest since 1986 set the previous day.

The Swiss Franc (CHF) has pulled back from session highs against the US Dollar (USD) on Thursday, following the release of softer-than-expected Swiss Consumer Price Index (CPI) figures.

MUFG strategist Michael Wan argues Japanese rates "clearly have to head higher" after a positive Tankan survey, strong capital investment appetite and rising inflation expectations.

The USD/CAD pair trades flat around 1.4210 during the European trading session on Thursday. The Loonie pair has remained sideways for over a week, with investors seeking fresh cues regarding the United States (US) interest rate outlook.

United Overseas Bank’s (UOB) Quek Ser Leang highlights that EUR/USD closed softer at 1.1376 after choppy trading between 1.1361 and 1.1423. Short-term momentum is turning lower, with scope to test 1.1360 while keeping the major 1.1335 support intact.