BNY’s Bob Savage notes that the Reserve Bank of India (RBI) has told state-run Oil refiners to cut spot US Dollar (USD) purchases and instead tap a special credit line via State Bank of India.

The Australian Dollar (AUD) outperforms its major currency peers, trading 0.16% higher to near 0.7175 ahead of the opening of United States (US) markets during the European trading session on Friday.

The US Dollar (USD) keeps heading south against the Canadian Dollar (CAD) on Friday, reaching three-week lows at 1.3670.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights that UK gilts and the Pound are underperforming as political pressure on Prime Minister Keir Starmer intensifies. The bank expects Labour’s weak standing and fiscal credibility challenges to weigh on UK assets.

EUR/GBP trades around 0.8715 on Friday at the time of writing, up 0.06% on the day, as the Euro (EUR) finds moderate support from stronger inflation data in the Eurozone while the Pound Sterling (GBP) remains constrained by cautious signals from the Bank of England (BoE).

The Pound Sterling (GBP) trades almost flat against the US Dollar (USD) at around 1.3530 during the European trading session on Friday.

Rabobank strategist Molly Schwartz highlights that the US Dollar (USD) was the third best-performing G10 currency, but the Canadian Dollar (CAD) outpaced it, pushing USD/CAD down to 1.37, reflecting relative CAD strength on the day.

Eurozone Trade Balance s.a.: €7B (February) vs previous €12.1B

Eurozone Trade Balance n.s.a. registered at €11.5B, below expectations (€11.7B) in February

Societe Generale analysts observe USD/JPY remains little changed for a second week, trading just below 160 where verbal intervention risk persists.

The Japanese Yen (JPY) trades lower against its major currency peers during the European trading session on Friday.

United Overseas Bank’s (UOB) strategists Quek Ser Leang and Lee Sue Ann highlight that EUR/USD failed to break clearly above 1.1825 and has slipped into consolidation after a sharp pullback from 1.1823 to 1.1766.

The NZD/USD pair is seen extending the previous day's retracement slide from the 0.5920-0.5925 area, or the highest level since March 11, and drifting lower for the second straight day on Friday.

The GBP/JPY cross attracts fresh sellers following an intraday uptick to the 215.65-215.70 region and retreats to the lower end of its daily range during the early European session on Friday.

The USD/CAD pair extends its downside to around 1.3685 during the early European trading hours on Friday. Reports of a ceasefire between Israel and Lebanon reduce safe-haven demand for the US Dollar (USD).

The Euro (EUR) remains practically flat against the US Dollar (USD) on Friday, trading at 1.1782 at the time of writing.

Danske Research Team notes that EUR/USD has retraced its war-linked decline and now trades around 1.18. They have revised their 1M and 3M EUR/USD forecasts to 1.18, expecting the pair to stay near current levels in the short term.

The GBP/USD pair trades with mild losses near 1.3520 during the early European trading hours on Friday. The Cable softens against the US Dollar (USD) despite the stronger-than-expected UK economic data.

The Australian Dollar (AUD) trades higher against its major currency peers, is up 0.1% around 0.7170 against the US Dollar (USD) during the early European trading session on Friday.

The Indian Rupee (INR) opens higher against the US Dollar (USD) on Friday, as the opening of special credit lines for state-run oil buyers to meet their foreign exchange needs has strengthened the Asian currency.

The USD/JPY pair is seen building on the previous day's goodish rebound from the 158.25 region, or over a one-week low, and gaining some follow-through positive traction on Friday. This marks the third straight day of a move up and lifts spot prices to mid-159.00s during the Asian session.

The AUD/JPY cross trades in positive territory for the fifth consecutive day around 114.30 during the early European session on Friday. The Australian Dollar (AUD) strengthens against the Japanese Yen (JPY) on a hawkish stance of the Reserve Bank of Australia (RBA). 

The NZD/USD pair trades with a mild negative bias for the second straight day and remains on the back foot below the 0.5900 mark through the Asian session on Friday.

EUR/JPY gains after registering little losses in the previous day, trading at 187.83, an all-time high, during the Asian hours on Friday. The technical analysis of the daily chart indicates the currency cross is trending higher within an ascending channel, signaling a persistent bullish bias.

The USD/IDR pair catches aggressive bids during the Asian session on Friday and advances to a fresh all-time peak, around 17,1885-17,190 region in the lar hour. Spot prices remain on track to register strong weekly gains and seem poised to appreciate further.

The EUR/USD pair trades subduedly near 1.1777 during the Asian trading session on Friday. The major currency pair has turned sideways after a two-week-long rally to near 1.1825 as investors await the announcement of another round of talks between the United States (US) and Iran.

USD/CHF moves little after two days of gains, trading around 0.7830 during the Asian hours on Friday. The pair steadies as traders adopt caution on uncertainty over US–Iran peace deal discussions.

GBP/USD loses ground for the third successive day, trading around 1.3520 during the Asian hours on Friday. The Pound Sterling (GBP) remains under pressure as traders pare back expectations for a Bank of England (BoE) rate hike, amid increasing optimism that tensions in the Middle East may be easing.

The USD/JPY pair gathers strength around 159.35 during the Asian trading hours on Friday. The pair extends the rally for the third consecutive day amid uncertainty in the Middle East. However, heightening intervention warnings from Japanese officials might cap the upside for USD/JPY. 

The AUD/USD pair holds steady above mid-0.7100s during the Asian session on Friday and for now, seems to have stalled the previous day's modest pullback from its highest level since June 2022. Spot prices remain on track to register strong weekly gains amid a supportive fundamental backdrop.