Silver (XAG/USD) extends its decline on Thursday as the US Dollar (USD) rebounds and US Treasury yields stabilize following a two-day drop driven by softer-than-expected US inflation data. At the time of writing, XAG/USD trades around $55.75, down 3.50% on the day.

Scotiabank strategists Shaun Osborne and Eric Theoret note GBP/USD is slightly weaker as it gives back part of yesterday’s strong advance, helped by expectations of a centrist, market-friendly Burnham government.

EUR/JPY trades around 185.80 at the time of writing on Thursday, little changed on the day after reaching a one-month high earlier this week.

NZD/USD fluctuates between minor gains and losses on Thursday as the Reserve Bank of New Zealand’s (RBNZ) hawkish stance supports the Kiwi, while a stronger US Dollar (USD) caps the upside. At the time of writing, the pair trades around 0.5842 after climbing to a one-month high earlier this week.

The Pound Sterling trims some of its Wednesday gains versus the US Dollar, dives by over 0.28% after solid US data and amid risk aversion, and augments the safe-haven appeal of the Greenback. At the time of writing, the GBP/USD trades at 1.3502, after peaking near 1.3545.

The Swiss Franc (CHF) weakens against the US Dollar (USD) on Thursday as the Greenback regains its footing following a two-day decline. At the time of writing, USD/CHF trades around 0.8080, up nearly 0.35% on the day, rebounding from an intraday low of 0.8044.

AUD/USD trades slightly higher near the 0.7010 area on Thursday, extending its recent recovery as the US Dollar (USD) struggles to gain sustained momentum following mixed United States (US) economic data.

Scotiabank strategists Shaun Osborne and Eric Theoret report USD/CAD is flat after the Bank of Canada (BoC) left policy unchanged and maintained a cautious tone on growth and inflation.

The Canadian Dollar (CAD) has entered a consolidation phase against the US Dollar (USD) following a volatile week.

EUR/USD trades with a downside bias on Thursday, snapping a two-day winning streak as the US Dollar (USD) steadies following recent losses driven by softer-than-expected United States (US) inflation data. At the time of writing, the pair trades around 1.1457, down modestly on the day.

USD/CAD trades around 1.4010 at the time of writing on Thursday, down 0.21% on the day as the Canadian Dollar (CAD) extends its gains against the US Dollar (USD).

GBP/JPY trades with a mild negative bias on Thursday, taking a breather after climbing to its highest level since December 2007 the previous day, as the British Pound benefited from easing political uncertainty and expectations of greater fiscal discipline.

Brazil Retail Sales (MoM) came in at 0.1%, below expectations (0.5%) in May

Brown Brothers Harriman’s (BBH) Elias Haddad reports USD/CAD is consolidating losses after benign United States (US) Consumer Price Index (CPI) and Producer Price Index (PPI) data, with the Bank of Canada (BoC) leaving its policy rate unchanged at 2.25% for a sixth meeting.

The Euro (EUR) trades marginally lower to near 1.1460 against the US Dollar (USD) during the European trading session on Thursday after giving back its early gains.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/JPY has seen a slight increase in downward momentum, pointing to a lower intraday range around 161.70–162.30.

The British Pound (GBP) has staged a broad-based rally across major currency pairs, hitting multi-month highs against both the US Dollar (USD) and the Euro (EUR).

Societe Generale highlights that USD/BRL has retreated to 5.07 after threatening 5.20 earlier in July, with the Brazilian Real (BRL) retaining a firm tone following soft United States (US) Producer Price Index (PPI) and lower Treasury yields.

EUR/GBP trades around 0.8485 on Thursday, up 0.24% at the time of writing, as investors digest a mixed batch of UK economic data and continued hawkish comments from European Central Bank (ECB) policymakers.

The Australian Dollar (AUD) trades practically flat against a weaker US Dollar (USD) on Thursday as investors pare back bets of immediate Fed tightening, following unexpectedly soft US inflation figures earlier in the week.

Lee Hardman at MUFG highlights that the British Pound (GBP) has strengthened sharply, helped by reports that Shabana Mahmood is set to become the next UK chancellor, reinforcing expectations of “sound public finances” under Prime Minister in-waiting Andy Burnham.

The GBP/USD pair attracts some sellers on Thursday and erodes a part of the previous day's strong gains to an over two-month high, around the 1.3555-1.3560 region.

Eurozone Trade Balance s.a. declined to €-5B in May from previous €1.3B

Eurozone Trade Balance s.a.: €-7.8B (May) vs previous €1.3B

Eurozone Trade Balance n.s.a. below forecasts (€-1.6B) in May: Actual (€-7.8B)

XAG/USD extends its losses for the second consecutive day, trading around $56.80 per troy ounce during the European hours on Thursday.

The USD/CHF pair struggles to capitalize on a modest intraday uptick on Wednesday and trades around the 0.8060 area during the early European session, just above the weekly low touched the previous day.

Commerzbank’s Michael Pfister argues that recent Canadian labour data and the Bank of Canada’s latest decision suggest domestic monetary policy is unlikely to reverse the downtrend in USD/CAD.

The Euro (EUR) edges higher on Thursday, with the US Dollar (USD) on its back foot, as recent US inflation figures triggered a significant repricing of near-term rate hikes by the Federal Reserve (Fed).

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that GBP/USD has surged to a two‑month high, with deeply overbought conditions but scope for further gains. Intraday, upside is seen limited to a test of 1.3560 while holding above 1.3480.