The USD/JPY pair extends the rally to around 156.85 during the early Asian session on Thursday. The Japanese Yen (JPY) weakens to a two-week low against the US Dollar (USD) amid concern over Japan's fiscal health under Prime Minister Sanae Takaichi's expansionary spending policy.

GBP/USD remains trapped in a near-term cycling pattern on Wednesday, continuing to churn aimlessly between 1.3700 and 1.3650.

The Canadian Dollar (CAD) held steady against the US Dollar (USD) on Wednesday, trading just below 1.3700 as markets adjusted to the end of the partial US government shutdown and digested a soft private payrolls report.

OCBC Bank's report, authored by Sim Moh Siong and Christopher Wong, discusses the recent rally of the Indian Rupee (INR) following headlines of a US-India trade deal. However, the report cautions that the lack of specifics may limit follow-through as investors return to fundamentals.

EUR/USD traded mostly flat on Wednesday, drifting around 1.1800 during the European and American sessions. Fiber pulled back from last week's four-year high near 1.2020 but continues to hold comfortably near the 1.18 handle.

NZD/USD trades around 0.6000 on Wednesday at the time of writing, down 0.90% on the day, as investors digest mixed New Zealand labor market data and an uncertain global macroeconomic environment.

The CAD is experiencing slight softness in quiet trading, primarily due to a stronger USD. The CAD's fair value estimate has increased slightly, reflecting a minor upward adjustment, note Scotiabank's Shaun Osborne and Eric Theoret.

The Pound Sterling drops against the US Dollar on Wednesday, and it remains trading below the 1.3700 figure, posting losses of 0.23% as traders wait for the Bank of England’s monetary policy decision.

The Riksbank has decided to keep its policy rate unchanged at 1.75%, citing solid economic growth and rising household consumption. Despite a weak labor market, inflation has reached target levels, allowing the Riksbank to adopt a wait-and-see approach.

The EUR is slightly down against the USD, showing signs of consolidation as it approaches the ECB's policy decision. Recent economic data, including services PMI and CPI, have aligned with expectations, providing little impetus for ECB policymakers.

USD/CHF trades without a clear trend around 0.7750 on Wednesday at the time of writing, showing an almost unchanged performance on the day. The pair remains trapped in a narrow range as the US Dollar (USD) struggles to find a clear catalyst following the release of mixed US macroeconomic data.

TD Securities analysts anticipate that the Bank of England's Monetary Policy Committee will maintain the Bank Rate at 3.75% with a 6-3 vote. The report highlights that the trajectory of inflation and the voting dynamics will be crucial for market movements.

The report from Brown Brothers Harriman (BBH) highlights that NZD/USD is trading heavy around 0.6000, with New Zealand's Q4 labor market data showing an improving job market. Employment increased more than expected, although the unemployment rate rose slightly.

The Japanese Yen (JPY) became the worst-performing currency of the G8 on Wednesday.

EUR/GBP eases toward 0.8610 on Wednesday, with the cross pressured by the Euro’s (EUR) relative weakness against a Pound Sterling (GBP) supported by monetary policy expectations in the United Kingdom (UK).

The United States (US) Institute of Supply Management (ISM) Services Purchasing Managers’ Index (PMI) data for January is scheduled to be published today at 15:00 GMT.

TD Securities reports on Eurozone inflation, which has dropped to 1.7% year-on-year, primarily due to energy prices. The analysis indicates that this disinflationary trend is not expected to influence the ECB's upcoming meeting, as it has been anticipated.

The AUD/USD pair trades marginally lower around 0.7020 during the European trading session on Wednesday. The Aussie pair ticks down as the US Dollar (USD) trades higher ahead of the key United States (US) economic data releases in the North American session.

EUR/JPY trades around 185.10 on Wednesday at the time of writing, up 0.55% on the day and reclaiming the 185 level.

The US Dollar (USD) shows marginal gains against its Canadian counterpart on Wednesday, trading near 1.3650 at the moment of writing.

Eurozone Harmonized Index of Consumer Prices (MoM) climbed from previous 0.2% to 2% in January

Eurozone Core Harmonized Index of Consumer Prices (MoM) unchanged at 0.3% in January

Eurozone Harmonized Index of Consumer Prices (YoY) meets expectations (1.7%) in January

Eurozone Producer Price Index (MoM) in line with expectations (-0.3%) in December

Eurozone Producer Price Index (YoY) came in at -2.1%, above forecasts (-2.3%) in December

Deutsche Bank Research Team analyzes the European Central Bank's (ECB) monetary policy outlook, suggesting that the ECB is likely to remain on hold throughout 2026, with the next move expected to be a hike in mid-2027.

TD Securities analysts Prashant Newnaha and Alex Loo discuss the implications of Japan's upcoming Lower House Election on fiscal policy and the USDJPY exchange rate.

AUD/JPY extends its winning streak for the third successive session, trading around 110.00 during the European hours on Wednesday.

The New Zealand Dollar is practically flat against the US Dollar on Wednesday, trading at 0.6040 at the time of writing, after being rejected at 0.6063 on Tuesday. A string of mixed New Zealand employment figures has halted the pair’s recovery from weekly lows at 0.5990.

Eurozone HCOB Composite PMI registered at 51.3, below expectations (51.5) in January