Silver (XAG/USD) keeps rallying on Thursday, with precious metals buoyed by lower Treasury yields amid a pullback in oil prices that has eased bets on US Federal Reserve (Fed) rate hikes.

USD/JPY trades around 156.30 on Thursday at the time of writing, down a modest 0.05% on the day, as the Japanese Yen (JPY) remains supported by speculation that Japanese authorities could step into the market to curb the currency’s weakness.

TD Securities strategists Izidor Flajsman and Prashant Newnaha argue that Australia is entering a rare phase of unilateral RBA tightening, with the Fed expected to cut while the RBA continues hiking.

The Euro (EUR) appreciates against the US Dollar (USD) for the second consecutive day on Thursday, trading at 1.1765 at the time of writing, fuelled by hopes of a peace deal that would end Iran’s war and upbeat Eurozone macroeconomic releases.

Commerzbank’s Michael Pfister argues that The Bank of Mexico's (Banxico) easing cycle, signalled by the March cut, should continue with another 25 bp reduction widely expected today.

The Australian Dollar (AUD) trades higher against its major currency peers, except the New Zealand Dollar (NZD), during the European trading session on Thursday.

Philip Wee at DBS Group Research points out that the Australian Dollar (AUD) has been a key beneficiary of the risk-on shift. AUD/USD broke above 0.72 after the Reserve Bank of Australia (RBA) signalled a pause following three consecutive rate hikes.

Eurozone Retail Sales, a key measure of consumer spending, decline by 0.1% month-on-month (MoM) in March, while it was expected to contract steadily by 0.3%. February’s figure was revised lower from -0.2%.

Eurozone Retail Sales (MoM) came in at -0.1%, above expectations (-0.3%) in March

Eurozone Retail Sales (YoY) above expectations (1%) in March: Actual (1.2%)

The Pound (GBP) trades practically flat around 212.50 against the Japanese Yen (JPY) on Thursday.

The USD/CHF pair is down around 0.15% to near 0.7775 during the European trading session on Thursday. The Swiss Franc pair faces selling pressure as the US Dollar (USD) declines due to growing hopes that the United States (US) and Iran would reach a peace deal soon.

Silver (XAG/USD) appreciates for the second consecutive day on Thursday, with precious metals buoyed amid lower Treasury yields, as the decline in Oil prices has eased bets on US Federal Reserve (Fed) rate hikes.

The NZD/USD pair seesaws between tepid gains/minor losses and holds above mid-0.5900s through the early European session on Thursday.

BNY’s Geoff Yu argues that changing gilt ownership patterns limit downside for the Pound (GBP) even as United Kingdom (UK) fiscal risks rise. Foreign investors have already reduced exposure, leaving domestic buyers dominant.

The USD/CAD pair trades with mild gains around 1.3635 during the early European trading hours on Thursday. Hopes for a US-Iran peace deal to end the war drag crude oil prices lower, weighing on the commodity-linked Canadian Dollar (CAD) against the US Dollar (USD). 

OCBC strategists Sim Moh Siong and Christopher Wong highlight that recent USD/JPY moves likely reflect Japanese intervention, with 158 replacing 160 as the key line.

The Euro (EUR) has found some support in the 0.8620 area against the British Pound (GBP), but upside attempts remain capped below a previous support area at 0.8650.

The Pound Sterling (GBP) trades calmly against its major currency peers, flattening around 1.3600 against the US Dollar (USD), during the European trading session on Thursday.

Danske Research Team expects the the central bank of Sweden, Riksbank to keep its policy rate unchanged at 1.75% but adopt a more hawkish tone, acknowledging upside inflation risks.

The USD/JPY pair trades on a flat note near 156.40 during the early European session on Thursday. The Japanese Yen (JPY) remains in focus after rallying on Wednesday amid suspected speculation that officials are intervening in the market. 

Commerzbank’s Volkmar Baur notes that the New Zealand Dollar (NZD) has underperformed the G10 since the war began, reflecting a dovish Reserve Bank of New Zealand (RBNZ) relative to the Reserve Bank of Australia (RBA).

The EUR/USD pair trades in a tight range around 1.1750 during the early European trading session on Thursday.

The Indian Rupee (INR) opens on a weak note against the US Dollar (USD) on Thursday, failing to capitalize on Wednesday’s strong upside move.

The AUD/USD pair attracts some dip-buyers during the Asian session on Thursday and stalls the previous day's late pullback from the 0.7275-0.7280 region, or its highest level since June 2022. Spot prices currently trade around mid-0.7200s, up for the third straight day.

The AUD/JPY cross gathers strength near 113.30 during the early European session on Thursday. The Australian Dollar (AUD) edges higher against the Japanese Yen (JPY) on improved risk sentiment following reports that the United States (US) and Iran are close to a deal to end the war.

GBP/USD remains stronger for the third consecutive day, trading around 1.3600 during the Asian hours on Thursday. The technical analysis of the daily chart indicates an improving bullish trend as the pair rebounds from the lower boundary of the ascending channel.

The EUR/JPY pair trades in a tight range around 183.75 during the Asian trading session on Thursday. The pair struggles for a direction as investors remain on the sidelines amid hopes that Japan’s Ministry of Finance (MoF) could intervene again.

Silver price (XAG/USD) rises for the second successive day, trading around $77.90 per troy ounce during the Asian hours on Thursday.

The NZD/USD pair trades in positive territory around 0.5960 during the Asian trading hours on Thursday. The New Zealand Dollar (NZD) strengthens against the US Dollar (USD) following reports that the United States (US) and Iran are close to a deal to end the war.