Commerzbank’s Erik Liem expects the European Central Bank (ECB) to deliver a fully priced 25bp hike, leaving markets focused on guidance for the path of rates beyond summer.

Deutsche Bank highlights that the Bank of Canada left its policy rate unchanged at 2.25% but stressed flexibility. Governor Macklem indicated that sustained higher energy prices could require consecutive rate hikes, while potential US trade restrictions might instead justify rate cuts.

Iranian Foreign Ministry has condemned overnight US strikes on Tehran, saying the attacks have rendered the ceasefire as “practically meaningless”, The Guardian reported.

Rabobank’s Global Strategist Michael Every argues that with war risks in the Middle East, the European Central Bank (ECB) faces greater dangers from inaction than from tightening too far.

According to a report from CNN, a diplomatic source has confirmed that talks between the United States (US) and Iran towards a permanent peace deal are still on track.

The Governor of Iran's Sirik county, an administrative division in Iran's Hormozgan province, announces during the European trading session on Thursday that the United States (US) projectile hit a cargo boat in the Gulf of Oman, Mehr News reported.

EUR/CAD recovers its recent losses registered in the previous day, trading around 1.6110 during the early European hours on Thursday. The currency cross appreciates as the Euro (EUR) receives support ahead of the European Central Bank’s (ECB) policy decision due later in the day.

Danske Research Team expects the European Central Bank (ECB) to raise the deposit rate by 25bp to 2.25%, in line with consensus. With the June move fully priced, they see market attention shifting to communication on future policy.

The European Central Bank (ECB) is set to announce its monetary policy decision at 12:15 GMT following its June meeting. The Frankfurt-based institution is widely expected to raise its key interest rates by 25 basis points, taking the deposit facility rate to 2.25% from 2%.

Danske Research Team highlights another weak session for global equities, with major indices down and a defensive rotation within sectors. Materials, industrials and technology underperformed, led by semiconductors.

USD/IDR extends gains for the second consecutive day, trading around 17,970 during the Asian hours on Thursday. The pair holds ground as the Indonesian Rupiah (IDR) struggles following the domestic Retail Sales data release.

Israeli military says home front command issued early warning after launches from Lebanon toward northern Israel.

Australia Consumer Inflation Expectations declined to 5.5% in June from previous 5.6%

West Texas Intermediate (WTI) oil price extends gains for the second successive day, trading around $90.70 per barrel during the Asian hours on Thursday.

"Ending soon" did not survive the day.

Japan BSI Large Manufacturing Conditions Index (QoQ) below forecasts (4.2) in 2Q: Actual (-1.8)

Japan Foreign Investment in Japan Stocks: ¥-701B (June 5) vs previous ¥-491.2B

United Kingdom RICS Housing Price Balance registered at -34%, below expectations (-31%) in May

United States (US) President Donald Trump said on Tuesday that a secret US military operation helped secure commercial shipping through the Strait of Hormuz, allowing more than 100 million barrels of Oil to reach global markets amid ongoing tensions involving Iran.

United States Monthly Budget Statement came in at $-293B, below expectations ($-275B) in May

US President Donald Trump said that the US “will be attacking Iran very hard,” as he pressures Tehran to sign the deal, adding that “they’ve taken too long to negotiate a deal that would have been great for them, now they will have to pay the price.”

United States 10-Year Note Auction up to 4.538% from previous 4.468%

The Bank of Canada left its policy rate unchanged at 2.25% on Wednesday, as widely expected, delivering a neutral-to-mildly dovish hold.

Nordea’s Jan Størup Nielsen notes that Danish consumer prices rose 1.9% year-over-year in May, with core inflation at 2.1%, its highest level since the start of 2024. Monthly inflation was driven by higher hotel and travel prices, while food and non-alcoholic beverages fell.

ING’s Frantisek Taborsky notes Czech inflation has surprised on the downside, but strong wage growth and stable core inflation keep the Czech National Bank on track for a rate hike at its June meeting.

Canada BoC Interest Rate Decision meets expectations (2.25%)

Scotiabank’s Shaun Osborne and Eric Theoret note GBP/USD is slightly higher, British Pound (GBP) outperforming most G10 peers except the Canadian Dollar (CAD) and Norwegian Krone (NOK), as traders await UK trade and industrial production data before the June 18 BoE meeting.

Brown Brothers Harriman’s (BBH) Elias Haddad reports that the Norwegian Krone is outperforming as underlying inflation overshot expectations in May, bringing forward rate hike bets from November to September.

TradingKey - Data released by the U.S. Bureau of Labor Statistics on Wednesday showed that the U.S. CPI rose 0.5% month-on-month in May, compared to the previous value of 0.6%; it rose 4.2% year-over-

United States Consumer Price Index Core s.a rose from previous 335.423 to 336.1213 in May