GBP/JPY extends its steep decline on Thursday as the Japanese Yen (JPY) strengthens sharply across the board for the second consecutive day. The cross fell 1.13% on Wednesday and is down around 1.60% at the time of writing, trading near 210.60, its lowest level in a month.

Commerzbank’s Michael Pfister highlights renewed weakness in the Japanese Yen as USD/JPY repeatedly breaks above 160 despite record FX interventions.

The Euro (EUR) is up 0.2% to near 1.1610 against the US Dollar (USD) during the European trading session on Thursday.

The New Zealand Dollar (NZD) is up 0.16% at around 0.5860 against the US Dollar (USD) during the European trading session on Thursday.

EUR/JPY falls sharply on Thursday and trades around 181.40 at the time of writing, down 1.37% on the day. The Japanese Yen (JPY) strengthens significantly against the Euro (EUR), supported by renewed warnings from Japanese authorities over foreign exchange market moves.

The Euro (EUR) extends gains against a weaker British Pound (GBP) for the fourth consecutive day on Thursday, following downward revisions of both the Eurozone and UK Services Purchasing Managers’ Index (PMI) figures.

Derek Halpenny at MUFG notes the Canadian Dollar’s (CAD) immediate advance after the Bank of Canada left rates unchanged at 2.25% but signalled greater concern over inflation.

USD/JPY extends its losses for the second consecutive day, trading around 156.80 during the European hours on Thursday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report AUD/USD dipped to 0.7122 before a strong rebound to 0.7176, leaving intraday price action in a 0.7140–0.7180 range. Downward momentum is fading and a break above 0.7190 would confirm 0.7120 is out of reach.

Here is what you need to know on Thursday, September 3:

The Euro (EUR) picks up against a somewhat softer US Dollar (USD) on Wednesday, but upside attempts are frail, after last week's 0.8% decline and Eurozone PMI data have failed to boost confidence in the Eurozone's economic outlook.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note GBP/USD extended its decline to 1.3475 before rebounding, closing at 1.3485. Intraday bias remains lower, but any weakness is seen limited to a test of 1.3465, with 1.3510 marking a shift back to range trading.

Danske Research Team reports that EUR/USD is around the 1.16 level while European government bond yields continue to climb and US yields show a mixed pattern.

USD/CAD extends its losses for the second consecutive day. trading around 1.3820 during the Asian hours on Thursday. The technical analysis of the daily chart indicates the pair is positioned within the descending channel pattern, signalling a bearish bias.

The Swiss Franc (CHF) accelerated its recovery against the US Dollar (USD) on Wednesday’s early European session, as Swiss inflation and economic growth data beat expectations.

The NZD/USD pair posts modest gains around 0.5855 during the early European trading hours on Thursday, supported by stronger-than-expected Chinese economic data. Attention will shift to the US August employment data, which will be released later on Friday.

The USD/JPY pair remains under intense selling pressure for the second straight day and plummets to a nearly four-week low, around the 157.25-157.20 region during the early European session on Thursday.

Commerzbank’s Charlie Lay and Dr. Henry Hao highlight a sharp rebound in the Japanese Yen, with USD/JPY dropping around 150 pips as markets react to increasingly hawkish Bank of Japan guidance and intervention speculation.

The Australian Dollar (AUD) edges down against the US Dollar (USD) on Thursday, following a narrowing trade surplus in Australia and fairly positive PMI data from China, a key trading partner.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that EUR/USD has shifted into short-term range trading between 1.1570 and 1.1610 after a dip to 1.1565 and rebound to 1.1608. They still see scope for a test of 1.1550 unless 1.1630 strong resistance breaks.

The GBP/USD pair trades in positive territory around 1.3490 during the early European trading hours on Thursday, bolstered by a weaker US Dollar (USD). Traders await the Bank of England (BoE) Governor Andrew Bailey’s speech and US August jobs data later on Friday for fresh impetus. 

The Euro (EUR) trades slightly higher against the US Dollar (USD) at around 1.1600 during the early European trading session on Thursday.

The Indian Rupee (INR) opens strongly against the US Dollar (USD) on Thursday, extending the rally to near 94.28.

EUR/JPY extends its losses for the second successive day, trading around 183.00 during the Asian hours on Thursday. Technical analysis of the daily chart indicates the currency cross remains within a symmetrical triangle, signalling a consolidation phase.

The GBP/JPY cross remains under intense selling pressure for the second straight day and drops to a three-and-a-half-week low, around the 212.75-212.70 region during the Asian session on Thursday.

USD/CAD extends its losses for the second consecutive day, trading around 1.3830 during the Asian hours on Thursday. The currency pair experiences downward pressure as a sharp rally in the Japanese Yen (JPY) weighed heavily on the US Dollar (USD).

The USD/JPY pair attracts some sellers to near 158.15 during the Asian trading hours on Thursday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) following hints from Japanese policymakers that interest rates will rise later this month.

The AUD/USD pair struggles to capitalize on the previous day's bounce from the 0.7120 region, or a nearly two-week low, and oscillates in a range during the Asian session on Thursday.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 6.7807 compared to the previous day's fix of 6.7829 and 6.7167 Reuters estimate.

The GBP/USD pair consolidates below the 1.3500 psychological mark during the Asian session on Thursday and remains close to a three-week low, touched the previous day.