EUR/USD remains subdued for the second consecutive day, trading around 1.1740 during the Asian hours on Wednesday. The pair holds little losses as the US Dollar (USD) gains ground on increased market caution amid ongoing uncertainty surrounding the Middle East conflict.

The USD/CAD pair fails to capitalize on the previous day's modest recovery from the 1.3630 region, or its lowest level since March 13, and remains on the back foot during the Asian session on Wednesday.

The AUD/USD pair trades in positive territory near 0.7160 during the Asian trading hours on Wednesday. However, the potential upside for the pair might be limited amid uncertainty regarding Iran's participation in further peace talks. 

The GBP/JPY cross trades with a positive bias for the third straight day and touches a fresh weekly top, around the 215.35-215.40 region during the Asian session on Wednesday.

The USD/CHF pair trades in a tight range around 0.7800 during the Asian trading session on Wednesday. The Swiss Franc pair consolidates as investors await remarks from Iran regarding the announcement of the ceasefire extension by the United States (US).

EUR/JPY remains subdued for the second successive day, trading around 187.10 during Asian hours on Wednesday. The technical analysis of the daily chart indicates the currency cross is remaining within an ascending channel, signaling a persistent bullish bias.

The NZD/USD pair gathers strength to around 0.5905 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) on hotter-than-expected domestic inflation data. 

GBP/USD remains flat after registering modest losses in the previous trading day, hovering around 1.3510 during the Asian hours on Wednesday.

The USD/JPY pair oscillates in a narrow band during the Asian session on Wednesday and currently trades around the 159.30 area, just below a one-week high set the previous day.

The USD/CAD pair trades on a weaker note near 1.3655 during the Asian trading hours on Wednesday. Tensions in the Strait of Hormuz provide some support to the commodity-linked Canadian Dollar (CAD) against the US Dollar (USD). 

On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8635 compared to the previous day's fix of 6.8594 and 6.8233 Reuters estimate.

AUD/USD pares its recent losses from the previous day, trading around 0.7160 during the Asian hours on Wednesday.

The EUR/USD pair trades in negative territory near 1.1750 during the early Asian session on Wednesday. The ongoing conflict between the United States and Iran, as well as uncertainty surrounding the Strait of Hormuz blockade, weighs on the Euro (EUR) against the US Dollar (USD). 

GBP/USD slid 0.15% on Tuesday, settling close to 1.3500 after a volatile session that traded a roughly 60-pip range. Price unwound twice during European and US trade with sharp downside candles, only to bounce back off the lows on each occasion before recovering modestly into the close.

USD/JPY rose 0.37% on Tuesday, settling close to 159.40 after pushing as high as 159.65 during the US session.

The NZD/USD receded during the American session, recovering toward the 0.5880 area as the US Dollar (USD) lost some traction despite ongoing geopolitical risks and political pressure on the Federal Reserve.

The Australian Dollar retreats during the North American session, down more than 0.30%. High tensions in the Middle East, spurred by Iran’s decision not to attend talks with the US in Pakistan. At the time of writing, the AUD/USD trades at 0.7153 after hitting a daily high of 0.7185.

MUFG’s Senior Currency Analyst Lloyd Chan argues that while geopolitical risks stay elevated, valuation metrics such as REER now show meaningful Rupiah undervaluation versus the US Dollar.

USD/CAD holds firm on Tuesday as the US Dollar (USD) steadies after recent weakness, although the pair lacks strong upside momentum as elevated Oil prices provide underlying support to the commodity-linked Canadian Dollar (CAD).

Rabobank’s Global Strategist Michael Every highlights a complex European backdrop for the Euro (EUR), with Ukraine’s battlefield gains, EU financing plans, and internal political splits.

Scotiabank strategists Shaun Osborne and Eric Theoret observes the Canadian Dollar (CAD) is modestly softer as USD stabilizes, but stresses the broader USD/CAD bear trend remains intact.

USD/JPY edges higher on Tuesday, supported by a modest rebound in the US Dollar (USD) as market sentiment turns risk-averse.

NZD/USD trades around 0.5900 on Tuesday at the time of writing, up 0.20% on the day, extending its rebound from the lows near 0.5850 recorded on Monday.

The AUD/USD fell near the 0.7160 level on Tuesday, maintaining a constructive tone as the US Dollar (USD) gained momentum amid destabilizing risk sentiment.

GBP/USD retreats, losing 0.18%, as the US Dollar recovers following a solid US Retail Sales report. Data in the UK reveals the labor market remains solid, while traders digest headlines from the Fed Chair nominee, Kevin Warsh, at the US Senate.

EUR/USD trades under pressure on Tuesday as the US Dollar (USD) steadies after recent weakness, with upbeat US economic data and weaker Eurozone sentiment adding further downside pressure on the Euro (EUR).

Rabobank’s Senior FX Strategist Jane Foley argues that UK politics, including questions over Prime Minister Starmer’s position and Labour’s prospects in May elections, will weigh on GBP sentiment.

EUR/GBP trades on the back foot on Tuesday, with the British Pound (GBP) outperforming the Euro (EUR) following broadly resilient UK labor market data, while softer economic sentiment from the Eurozone adds further pressure on the Euro.

Brown Brothers Harriman’s (BBH) Elias Haddad reports that NZD is outperforming after hotter-than-expected Q1 Consumer Price Index (CPI), with headline inflation at 3.1% y/y versus the RBNZ’s 2.8% projection.

Rabobank’s Senior FX Strategist Jane Foley highlights that UK political uncertainty around Labour leadership and upcoming May elections could distract GBP markets this spring. She links GBP’s earlier outperformance to a sharp repricing of Bank of England (BoE) expectations, now partly unwound.