The GBP/JPY edges higher by nearly 0.60% on Wednesday as the market mood improved amid speculation of a possible end to Iran’s war. Although the pair found support at the 100-day Simple Moving Average (SMA) at 210.08, sentiment remains fragile amid geopolitical uncertainty.

GBP/USD posted a solid recovery on Wednesday, climbing around 0.6% to trade back above the 1.3300 level after spending much of late March pinned below that figure.

USD/JPY closed next to flat on Wednesday, settling around 158.70 after a subdued session that followed two straight days of declines from the 160.40 area. The pair remains caught in congestion near 159.00, with price chopping between the recent swing high above 160.00 and support around 158.00.

AUD/USD gained around a third of a percent on Wednesday, bouncing from the 0.6900 handle before fading back below 0.6950.

USD/JPY trades in a narrow range on Wednesday, as the Japanese Yen (JPY) struggles to capitalize on a softer US Dollar (USD). At the time of writing, the pair is trading around 158.50 after retreating from the 160.00 handle touched earlier this week.

AUD/USD advances on Wednesday and trades around 0.6940 at the time of writing, up 0.56% on the day. The pair rebounds, supported by improving risk sentiment that weighs on the US Dollar (USD).

The Pound Sterling advances over 0.70% on Wednesday as risk appetite improved amid speculation of an end to the Middle East conflict, following US President Trump's statement, "We're going to be out of Iran pretty quickly." The GBP/USD trades above 1.3300 after bouncing off daily lows of 1.3216.

USD/CAD trades with a softer tone on Wednesday, as a pullback in the US Dollar (USD) lends support to the Canadian Dollar (CAD). The pair is trading around 1.3891 at the time of writing, retreating after touching its highest level since December 2025 earlier this week.

EUR/USD extends its advance for a second consecutive day on Wednesday, climbing to one-week highs as improving optimism around the US-Iran war lifts risk sentiment, pushing the Euro (EUR) higher and weighing on the US Dollar (USD).

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is only slightly firmer versus the Dollar (USD) despite broad USD weakness, but sees scope for a meaningful CAD recovery after a 1.4% Q1 decline.

GBP/JPY rebounds on Wednesday, as signs of easing geopolitical tensions between the US and Iran improve market sentiment and support risk appetite.

UOB analysts Quek Ser Leang and Lee Sue Ann highlight a sharp USD/JPY drop from near 160.00 to around 158.70, with scope for further declines toward 158.00 while a sustained move below that level is not yet anticipated.

USD/JPY trades around 158.50 on Wednesday at the time of writing, down 0.14% on the day after touching a little over a one-week low near 158.27 earlier in the day.

ING’s Francesco Pesole writes that EUR/GBP volatility has reflected shifting rate differentials, but Bank of England (BoE) pricing may fall faster than for the European Central Bank (ECB) .

The US Dollar (USD) is trading lower across the board on Wednesday, extending its reversal against the Swiss Franc (CHF) to session lows at 0.7925 so far, from highs above 0.8040 highs on Tuesday.Investors’ appetite for risk is crushing the Greenback on Wednesday, following comments by US President

The Australian Dollar (AUD) is outperforming most of its peers on Wednesday, and extends gains against the US Dollar (USD), reaching the mid-range of 0.6900s, from 0.6833 lows on Tuesday, fuelled by higher risk-appetite amid hopes of a swift end to the Iran war.

UOB analysts Quek Ser Leang and Lee Sue Ann highlight a sharp EUR/USD rebound from 1.1446 to 1.1563, with scope for further gains toward 1.1595 while 1.1620 is seen as strong resistance.

EUR/GBP trades around 0.8725 on Wednesday at the time of writing, down 0.10% on the day.

AUD/JPY gains ground for the second consecutive trading day, trading around 110.10 during the European hours on Wednesday. The currency cross appreciates as the risk-sensitive Australian Dollar (AUD) receives support amid de-escalating Middle East tensions.

Eurozone Unemployment Rate above expectations (6.1%) in February: Actual (6.2%)

The Euro (EUR) accelerated its recovery against the Japanese Yen (JPY) on Wednesday, reaching session highs above 183.80, from 182.65 lows on Monday, fuelled by the release of stronger-than-expected Eurozone manufacturing figures and a brighter market mood.

The EUR/USD pair extends Tuesday’s recovery on Wednesday, trading 0.3% higher to near 1.1600 during the European session. The major currency pair gains as demand for safe-haven assets has diminished due to increased hopes of a ceasefire in the Middle East.

Societe Generale analysts Reo Sakida and Jin Kenzaki highlight stronger‑than‑expected resilience in Japan’s non‑manufacturing sector in 1Q, based on the 4Q25 Tankan survey.

Eurozone HCOB Manufacturing PMI above forecasts (51.4) in March: Actual (51.6)

Germany HCOB Manufacturing PMI came in at 52.2, above expectations (51.7) in March

France HCOB Manufacturing PMI below forecasts (50.2) in March: Actual (50)

The GBP/JPY cross shows some resilience below the 100-day Simple Moving Average (SMA) for the second consecutive day and gains some positive traction on Wednesday.

ING’s Francesco Pesole highlights that hawkish European Central Bank rhetoric is making Euro front-end rates stickier on the downside versus the US, where Fed easing is more easily priced.

NZD/USD extends its gains for the second successive day, trading around 0.5760 during the European hours on Wednesday. The technical analysis of the daily chart signals an ongoing bearish bias as the pair remains within a descending channel pattern.

Italy HCOB Manufacturing PMI came in at 51.3, above forecasts (50.9) in March