The Euro registers modest gains of 0.12% as traders remain optimistic about the outcome of US-Iran talks, which had been uninterrupted, as revealed by the Pakistani Foreign Minister to journalist Mallick.

Brown Brothers Harriman’s (BBH) Elias Haddad reports USD/IDR has hit a fresh record high above 18,000, while Indonesian equities have slumped to multi-year lows.

The NZD/USD pair trades near the 0.5870 level on Friday, as the United States Dollar (USD) remains supported by cautious Federal Reserve (Fed) commentary and safe-haven demand amid ongoing uncertainty surrounding Iran.

MUFG’s Lloyd Chan highlights that IDR is under particular pressure as rising US yields intersect with domestic policy uncertainty and higher energy prices.

The Swiss Franc spent Thursday doing something that, on paper, should not work.

The Canadian Dollar (CAD) recovers some ground against the US Dollar (USD) on Thursday, with USD/CAD reversing earlier gains as traders weigh a softer Greenback against lower Crude Oil prices.

EUR/USD edges higher on Wednesday as signs of easing tensions in the Middle East reduce safe-haven demand for the US Dollar (USD). At the time of writing, the pair trades around 1.1625, up 0.25% on the day.

The Pound Sterling registers gains of over 0.16% amid news that Israel and Lebanon agreed on a ceasefire, but headlines that Hezbollah rejected the plan triggered a retracement on Cable. The GBP/USD trades at 1.3439, after bouncing off daily lows of 1.3408.

The AUD/USD pair trades near 0.7140 on Thursday as the US Dollar (USD) regains traction following the latest labor market data, while traders continue to assess remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock.

Scotiabank’s Analyst Team highlights that Japanese Yen gains are modest as USD/JPY hovers near the key 160 level, keeping intervention risk in focus.

USD/JPY trades around 159.90 at the time of writing on Thursday, down 0.10% on the day. The pair is moving lower as the Japanese Yen (JPY) benefits from renewed demand, supported by growing expectations that the Bank of Japan (BoJ) will deliver another interest rate hike at its June policy meeting.

Scotiabank’s Analyst Team notes the Canadian Dollar (CAD) has slipped below 1.39 against the US Dollar (USD) as weak domestic data contrast with stronger United States (US) figures, widening rate spreads in favour of the USD.

BNY's Bob Savage notes that BoJ officials are reportedly leaning toward a 25bp rate hike to 1.0% at the June meeting, with scope for further increases in 2026 as inflation risks from energy and Japanese Yen weakness persist.

TD Securities strategists maintain a structurally bearish view on the US Dollar (USD) and a medium-term bias toward lower USD/CAD. They expect Fed easing in 2027, a high bar for further Bank of Canada (BoC) cuts, and improving Canadian terms of trade to support CAD.

NZD/USD trades around 0.5880 on Thursday at the time of writing, up 0.28% on the day after ending a three-day decline. The pair's rebound is supported by expectations of a more restrictive monetary policy in New Zealand, although caution remains warranted due to ongoing tensions in the Middle East.

BNY’s Bob Savage reports that RBA Governor Michele Bullock highlighted a 75bp rise in the cash rate this year to return inflation to target, but noted inflation re-accelerated in late 2025 as growth, a tight labor market and higher Oil prices lifted costs.

ING’s Chris Turner notes USD/BRL may move toward 5.14 as the stronger US Dollar and local political and trade risks weigh on the Brazilian Real (BRL). He argues BRL is catching up with domestic rate markets and expects dips to find support given Brazil’s high yields and energy exporter status.

UOB’s Quek Ser Leang and Lee Sue Ann note that USD/JPY briefly plunged before rebounding to close near 160.00, with upward momentum now fading. They expect the pair to consolidate between 159.20 and 160.30 in the near term, maintaining a firm underlying tone.

AUD/USD trades around 0.7135 at the time of writing on Thursday, up a modest 0.08% on the day, as the Australian Dollar (AUD) benefits from the release of stronger Australian trade data.

The Euro (EUR) is rallying against a weaker US Dollar (USD) in Thursday’s European trading session, reversing Wednesday’s losses and returning to the 1.3630 area at the time of writing.

The Eurozone Retail Sales data for April declines at a faster pace of 0.4% in April, compared to the 0.3% contraction expected. In March, the Retail Sales data, a key measure of consumer spending, rose by 0.8%, revised sharply higher from 0.1% decline.

The Canadian Dollar (CAD) keeps losing ground against the US Dollar (USD) on Thursday, but it has reversed most of the daily losses, as news of a deal between Israel and Lebanon has boosted hopes of progress in the US-Iran peace plan.

EUR/JPY trades around 185.85 on Thursday at the time of writing, up 0.12% on the day. The cross is supported by the Euro (EUR) as investors expect the European Central Bank (ECB) to deliver another interest rate hike at its June meeting.

Societe Generale strategists note USD/JPY trading just below 160 as hawkish comments from BoJ Governor Ueda fail to support the Japanese Yen (JPY). They highlight a sharp rebound in the 2-year UST/JGB spread and warn that a break higher in yields could extend Dollar strength.

The EUR/USD pair sticks to modest intraday gains through the first half of the European session, albeit it lacks follow-through buying and remains close to a one-week low touched earlier this Thursday.

Eurozone Retail Sales (MoM) registered at -0.4%, below expectations (-0.3%) in April

Eurozone Retail Sales (YoY) came in at 1%, above forecasts (0.3%) in April

The British Pound (GBP) is trading relatively subdued against the US Dollar, shifting into a corrective and range-bound phase.

The Japanese Yen (JPY) trades higher against its major currency peers during the European trading session on Thursday, with the USD/JPY pair dropping 0.12% lower to near 159.90.

UOB’s Quek Ser Leang and Lee Sue Ann highlight a sharp AUD/USD selloff after weaker Australian Gross Domestic Product (GDP), with the pair now hovering just above 0.7120 support. While intraday momentum suggests another test of this level, oversold conditions argue against a sustained break.