USD/CAD advances toward 1.3975 on Thursday at the time of writing, up 0.23% on the day, with the US Dollar (USD) benefiting from renewed safe-haven demand amid persistent tensions in the Middle East.

Brown Brothers Harriman’s (BBH) Elias Haddad notes the US Dollar (USD) is firm as United States (US) data show stalled disinflation and sticky inflation measures drifting away from the Federal Reserve’s (Fed) 2% target.

ING’s Chris Turner argues that with a 25bp ECB hike and further tightening already priced, the Euro faces a high bar for gains. Markets discount about 75bp of tightening through early next year.

South Africa Manufacturing Production Index (YoY) declined to -2.9% in April from previous 0.9%

The British Pound (GBP) trades cautiously against its major currency peers during the European trading session on Thursday, down 0.1% to near 1.3350 against the US Dollar (USD).

Bitcoin (BTC) recovers slightly, trading above $62,500 at the time of writing on Thursday after three consecutive days of losses earlier this week.

Gold (XAU/USD) trades with minor gains on Thursday but remains struggling below $4,100, amid geopolitical uncertainty and rising bets on Federal Reserve (Fed) rate hikes.

Michael Pfister at Commerzbank notes the Bank of Canada (BoC) kept rates at 2.25% and sees little impetus for near-term tightening given easing core inflation and a weak real economy. Market pricing now reflects only one hike by December.

The Australian Dollar (AUD) has given away previous gains and is trading lower for the third consecutive day against a stronger US Dollar (USD) on Thursday.

Ireland HICP (MoM) came in at -0.2%, below expectations (-0.1%) in May

Ireland Consumer Price Index (YoY) dipped from previous 3.7% to 3.6% in May

Ireland Consumer Price Index (MoM) down to -0.1% in May from previous 0.5%

Ireland HICP (YoY) meets forecasts (3.5%) in May

TD Securities strategists note that a softer core United Kingdom (UK) Consumer Price Index (CPI) print triggered initial US Dollar (USD) weakness, but they still expect the broad USD uptrend to remain supported into next week’s Federal Open Market Committee (FOMC) meeting.

Rabobank’s Molly Schwartz and Christian Lawrence review the latest Bank of Canada (BoC) decision, noting policymakers kept the overnight rate at 2.25% in June. They highlight ongoing risks from high energy prices and prolonged inflation, alongside a technical recession.

Pi Network (PI) edges higher on Thursday after three days of consecutive losses earlier this week, extending the prevailing downtrend since late April.  The scheduled unlocking of 16 million PI tokens on Thursday could add pressure to the intraday recovery.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights EUR/USD trading defensively near 1.1530 ahead of an expected 25 bps European Central Bank (ECB) rate hike to 2.25% and updated projections likely downgrading growth.

EUR/JPY trades around 185.20 on Thursday at the time of writing, as market participants remain cautious ahead of the European Central Bank (ECB) monetary policy decision.

South Africa Business Confidence Index declined to 123.6 in April from previous 131.3

Silver prices (XAG/USD) rose on Thursday, according to FXStreet data. Silver trades at $64.05 per troy ounce, up 1.05% from the $63.39 it cost on Wednesday.

ING’s Frantisek Taborsky expects the Central Bank of Turkey (CBRT) to keep its policy rate at 37%, maintaining a tight stance and policy flexibility.

South Africa Business Confidence Index dipped from previous 131.3 to 124.1 in April

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.

The US Dollar (USD) claws back its slight early losses and edges higher during the European trading session amid intensifying fears that the ceasefire between the United States (US) and Iran, announced on April 8, could collapse due to the exchange of attacks in the last few days.

BNY’s Geoff Yu argues that Swiss Franc (CHF) positioning looks stretched as investors bet on policy tightening that the Swiss National Bank (SNB) is unlikely to deliver.

West Texas Intermediate (WTI) oil price pares its recent gains from the previous day, trading around $87.60 per barrel during the European hours on Thursday.

The USD/CAD pair attracts fresh buyers following an intraday dip to the 1.3930 area on Thursday and builds on the overnight bounce from the weekly low.