The USD/JPY pair holds steady above mid-160.00s during the Asian session on Thursday, consolidating its gains registered over the past four days to the highest level since July 2024.

USD/CAD inches lower after five days of gains, trading around 1.4100 during the Asian hours on Thursday.

The AUD/USD pair gathers strength to around 0.7025 during the early Asian trading hours on Thursday. Optimism surrounding the US-Iran peace deal provides some support to the riskier assets, such as the Australian Dollar (AUD) against the US Dollar (USD).

The GBP/USD pair gains some positive traction during the Asian session on Thursday and moves away from its lowest level since April 7, around the 1.3260 region set the previous day.

On Thursday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8130 compared to the previous day's fix of 6.8096 and 6.7752 Reuters estimate.

The EUR/USD pair recovers some lost ground near 1.1515 during the early Asian trading hours on Thursday. The Euro (EUR) strengthens against the US Dollar (USD) on improved risk sentiment after US President Donald Trump signed the US-Iran MoU to end the war.

Brazil Interest Rate Decision in line with expectations (14.25%)

The Japanese Yen depreciated against the US Dollar on Wednesday after the US Federal Reserve delivered a hawkish hold, with most officials expecting one rate hike towards the end of the year, while the new Fed Chair, Warsh, reiterated the Fed’s commitment to achieving the 2% inflation goal.

The Pound spent Wednesday absorbing blows from both sides of the Atlantic. Softer than expected UK inflation set a heavy tone in the morning, and Kevin Warsh's hawkish first Federal Reserve (Fed) decision finished the job in the evening.

The Australian Dollar went into Kevin Warsh's first Federal Reserve (Fed) decision as a high-beta currency with no domestic shield, and it paid for it.

Kevin Warsh's first meeting as Federal Reserve (Fed) Chair was billed as a quiet hold, and on the headline rate it delivered exactly that. Everything wrapped around that hold, however, was a hawkish blow to the Euro.

The USD/JPY pair rises near the 160.40 level after the Federal Reserve (Fed) left interest rates unchanged in the 3.50%-3.75% range, as widely expected, in Kevin Warsh’s first policy meeting as Fed Chair.

Cable collapses during the North American session, as the Federal Reserve keep interest rates unchanged, but the ‘dot-plot’ hints at a divided central bank, with half of the eighteen reported dots in the ‘dot-plot’ seeing interest rates higher, which boosted the Greenback.

The Federal Reserve (Fed) left the federal funds rate at 3.50% to 3.75% on Wednesday, but the hold was the least interesting part of Kevin Warsh's first meeting as Chair.

The USD/CHF remains steady on Wednesday as market participants await the US central bank's monetary policy decision, with the Federal Reserve expected to hold rates unchanged. At the time of writing, the pair trades at 0.7932, flattish.

ABN AMRO’s research examines how evolving Federal Reserve policy and Eurozone fundamentals may shape EUR/USD over the coming quarters.

Russia Producer Price Index (MoM) declined to 2.5% in May from previous 6.1%

Russia Producer Price Index (YoY) up to 9.4% in May from previous 5.5%

The Pound Sterling retreats towards 1.3400 on Wednesday after the latest UK inflation report, forcing investors to reassess hawkish bets on the Bank of England, while solid US Retail Sales boost the Greenback, supported by US exceptionalism. The GBP/USD trades with losses of over 0.22%.

The AUD/USD pair trades near 0.7070 with a neutral tone on Wednesday, as the Australian Dollar (AUD) benefits from improved risk sentiment following the latest developments in the US-Iran conflict.

NZD/USD trades around 0.5820 on Wednesday at the time of writing, down 0.24% on the day as investors reduce risk exposure ahead of the Federal Reserve (Fed) monetary policy announcement.

The Japanese Yen (JPY) remains under pressure despite the Bank of Japan’s latest rate hike, with analysts highlighting that the move has not been enough to trigger a sustained  recovery for the Japanese currency.

USD/CAD trades around 1.4010 on Wednesday at the time of writing, gaining 0.10% on the day. The pair maintains a bullish tone as the Canadian Dollar (CAD) remains under pressure from falling Oil prices, while traders position ahead of the Federal Reserve’s (Fed) monetary policy decision.

National Bank of Canada (NBC) analysts discuss the Canadian Dollar, noting that USD/CAD remains range-bound and sensitive to upcoming Canadian and US data releases. They highlight how recent moves have been driven by shifting expectations for Bank of Canada and Federal Reserve policy.

The Euro (EUR) posts moderate losses against the US Dollar (USD) on Wednesday, giving away some of the ground gained over the last few days, with markets showing a cautious mood ahead of the US Federal Reserve’s (Fed) decision.

Societe Generale’s Kit Juckes notes that recent G10 policy moves, including a BOJ hike, have not produced dramatic FX shifts. He argues that a dovish Fed outcome would favour short USD/JPY positions.

The Japanese Yen (JPY) nurses mild gains against the US Dollar (USD) on Wednesday, as the USD/JPY pair eases to 160.20, still above 160.00, considered the limit of tolerable JPY weakness for Japanese authorities.

UOB Global Economics & Markets Research notes that AUD/USD was little changed after the Reserve Bank of Australia paused at 4.35% following three consecutive 25 bps hikes.

Germany 30-y Bond Auction declined to 3.49% from previous 3.62%

Brown Brothers Harriman highlights GBP/USD trading around its 200-day moving average as UK Gilts outperform European bonds.