EUR/USD trades under pressure on Thursday as ongoing Middle East tensions keep the US Dollar (USD) broadly supported, weighing on the Euro(EUR).

Commerzbank’s Tatha Ghose argues that upcoming Turkish CPI data are largely obsolete given the looming impact of higher energy prices. He expects a strong March monthly print but stresses that external-shock inflation may be treated as transient by FX markets.

The USD/JPY pair is trading near the 159.40 price region on Thursday, having surged earlier in the day, though price action turned more volatile during the American session as headlines briefly supported risk sentiment.

The British Pound retreats during the North American session after US President Donald Trump escalated the conflict, hinting that it will at least extend for 2 to 3 weeks. At the time of writing, the GBP/USD trades at 1.32144, down 0.40%.

EUR/GBP edges higher on Thursday, though it lacks strong follow-through buying, as choppy price action persists amid heightened volatility across the FX space.

The AUD/USD fell to near the 0.6890 price region on Thursday, as markets turned sour amid escalating Middle East fighting and a surge in the safe-haven US Dollar (USD).

Commerzbank’s Michael Pfister argues that Mexico’s strong US export performance and extensive USMCA compliance have cushioned the Mexican economy and the Peso from recent US tariff shocks.

GBP/JPY trades with a mild downside bias on Thursday, though it lacks strong follow-through selling and trims part of its intraday losses as markets remain volatile.

Rabobank’s Senior FX Strategist Jane Foley discusses recent Swiss inflation data and implications for the Swiss Franc. Foley notes that low Swiss CPI reduces pressure on the SNB to cut rates below zero, while credible FX intervention and safe-haven demand should keep CHF firm.

Brazil Industrial Output (YoY) registered at -0.7% above expectations (-1%) in February

Brazil Industrial Output (MoM) came in at 0.9%, above forecasts (0.7%) in February

Silver (XAG/USD) has lost more than $10, hammered by a risk-averse reaction to US President Trump's televised message on Wednesday. The precious metal is testing levels below $71.00 at the time of writing, after peaking at $81.13 on Wednesday, as the Dollar prevails in risk-averse markets.

The Canadian Dollar (CAD) trades higher against its major currency peers, except the US Dollar (USD), during the European trading session on Thursday.

The Australian Dollar (AUD) trades lower against its major currency peers, is down 0.75% to near 0.6875 against the US Dollar (USD) during the European trading session on Thursday.

The US Dollar (USD) is outperforming its peers on Thursday, and rallies about 0.6% against the Japanese Yen on Thursday.

Commerzbank’s Michael Pfister highlights that Bank of England (BoE) Governor Andrew Bailey has pushed back against aggressive tightening expectations, stressing labour market weakness and limited pricing power.

The EUR/JPY pair trades in a tight range around 184.00 during the European trading session on Thursday. The pair consolidates as investors seek fresh cues regarding how monetary policies by the European Central Bank (ECB) and the Bank of Japan (BoJ) will flare going ahead.

Brazil Fipe's IPC Inflation climbed from previous 0.25% to 0.59% in March

MUFG’s Senior Currency Analyst Michael Wan analyzes new RBI measures restricting Indian Rupee non-deliverable derivatives and recent limits on onshore USD/INR positions. He argues these steps deepen the divide between onshore and offshore markets and aim to curb INR weakness.

EUR/GBP’s reversal from one-month highs at 0.8740 found buyers right above 0.08700 on Wednesday, and the pair has trimmed losses on Thursday, returning to the 0.8720 area at the time of writing.The Euro (EUR) seems to be faring better than the British Pound (GBP) amid the risk-averse market mood, an

NZD/USD depreciates nearly 0.8% after two days of gains, trading around 0.5710 during the European hours on Thursday. The technical analysis of the daily chart signals a persistent bearish bias as the pair remains within a descending channel pattern.

Here is what you need to know on Thursday, April 2:

The US Dollar (USD) is trading higher against the Swiss Franc (CHF) on Thursday. The pair bounced up from lows near 0.7900 on Wednesday, but it is struggling to confirm above the 0.8000 psychological level, despite the release of softer-than-expected Swiss inflation figures.

ING’s Chris Turner highlights that Bank of England (BoE) Governor Andrew Bailey pushed back against aggressive tightening expectations, warning markets are overpricing rate hikes that hurt confidence.

The EUR/USD pair is down 0.5% to near 1.1530 in the European session on Thursday, resuming its decline after a two-day recovery move. The major currency pair faces intense selling pressure as the US Dollar (USD) strengthens due to fears that the Middle East war is far from over.

The GBP/JPY cross meets with a fresh supply on Thursday and reverses a part of the previous day's goodish recovery from the 209.70-209.65 area, or the vicinity of a nearly four-week low.

Silver price (XAG/USD) slumps to around $70.60 during the early European session on Thursday. The white metal faces some selling pressure after comments from US President Donald Trump on the Iran conflict. 

The USD/JPY pair is up 0.4% to near 159.50 in the early European trade on Thursday. The pair recovers strongly after a two-day corrective move as the safe-haven demand of the US Dollar (USD) has revived, following threats that the United States (US) will hit Iran extremely hard in the coming weeks.

The GBP/USD pair attracts some sellers to near 1.3215 during the early European trading hours on Thursday. The Pound Sterling (GBP) weakens against the US Dollar (USD) as US President Donald Trump’s comments dampen de-escalation hopes.

The US Dollar (USD) is retracing Wednesday’s losses against the Canadian Dollar on Thursday, as investors resume the cautious trade witnessed in March, amid dwindling hopes of a de-escalation in Iran.