USD/JPY edges lower on Friday as the Japanese Yen (JPY) strengthens against a softer US Dollar (USD), with easing Oil prices providing additional support, given Japan’s heavy reliance on imported energy. At the time of writing, the pair is trading around 158.18, down 0.61% on the day.

The Swiss Franc (CHF) strengthens against the US Dollar (USD) on Friday, with USD/CHF on track for a second consecutive weekly decline as the Greenback remains under pressure amid improving market sentiment on hopes of a potential US-Iran deal.

GBP/USD advances during the North American session as breaking news revealed Iran’s reopening of the Strait of Hormuz following the agreement of a ceasefire in Lebanon, which pushed the British Pound to a daily high near 1.3600. At the time of writing, the pair trades at 1.3567, up 0.36%.

USD/CAD declines on Friday, trading around 1.3670 at the time of writing, down 0.26% on the day. The pair remains under pressure as the Canadian Dollar (CAD) strengthens against the US Dollar (USD) despite a sharp drop in Oil prices.

The AUD/USD surged toward the 0.7200 price region on Friday, as improving headlines out of the Middle East weigh on the US Dollar (USD) and support risk-sensitive currencies like the Australian Dollar (AUD).

Nordea’s Henrik Unell maintains a constructive stance on the Swedish Krona, arguing that carry should be secondary to growth prospects and equity flows.

The Euro (EUR) edges higher against the US Dollar (USD) on Friday as the Greenback comes under heavy selling pressure after Iran’s decision to reopen the Strait of Hormuz improved overall market sentiment and raised hopes for a potential US-Iran peace agreement.

GBP/JPY trades with a mild downside bias on Friday in relatively calm market conditions, with the Japanese Yen modestly outperforming the British Pound as growing expectations around a potential US–Iran peace agreement weigh on Oil prices.

USD/JPY falls toward 158.20 at the time of writing, down 0.61% on Friday after hitting a daily high of 159.53 earlier. The pair now faces notable selling pressure as improving geopolitical conditions in the Middle East reduce demand for safe-haven US Dollar (USD).

ING keeps a mildly bearish profile for USD/CAD into year‑end, driven mainly by expected Dollar weakness once the Federal Reserve resumes cutting in 3Q. Canada’s domestic backdrop is less supportive, with the Bank of Canada worried about upcoming USMCA talks and jobs.

The New Zealand Dollar (NZD) shows marginal losses against the US Dollar (USD) on Friday, trading around 0.5885 at the time of writing, after pulling back from monthly highs, around 0.5920 earlier this week.

The USD/CHF pair trades 0.15% lower at around 0.7825 during the European trading session on Friday. The Swiss Franc pair faces selling pressure as optimism towards a permanent ceasefire between the United States (US) and Iran has diminished the appeal of safe-haven assets.

DBS Group Research’s Philip Wee notes that EUR/USD’s recent advance stalled after repeated failures to break 1.18, as the European Central Bank (ECB) pushes back against expectations for an April rate hike.

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.