EUR/USD
The pair failed to benefit from the outperformance of EUR vs. GBP and trended lower throughout the session, as somewhat mixed EU based PMIs reinforced the growing consensus view that the ECB will introduce more accommodative measures to support growth in the joint currency bloc. The downward bias saw the pair approach the 200DMA line, which once broken will likely lead to further selling amid the never-ending barrage of comments by various ECB members regarding to potential measures the ECB could turn to in order to combat low inflation.
GBP/USD
GBP underperformed EUR, with the GBP/USD also trading lower, as UK borrowing data indicated that finances were hit by fall in income tax and despite the in line with expectations GDP reading, imports and exports missed. Touted profit taking and positioning ahead of the regular month-end buying of EUR/GBP by a major EU based central bank also weighed on the pair. Going forward, there are no tier 1 UK based macroeconomic releases due on Friday and instead the pair will likely be driven by the reaction to the release of the latest IFO survey out of Germany.
USD/JPY
The pair traded higher throughout the session on Thursday, supported by the release of much better than expected Chinese HSBC Manufacturing PMI data, which also resulted in the Nikkei 225 index settling with gains of over 2%. Of note, the pair managed to hold onto gains even as the sentiment surrounding the dubious bounce-back by the Chinese PMI ebbed. Going forward, the price action will likely remain a product of interest rate plays, as market participants continue to debate on the timing of policy tightening by the Fed.