AUD/USD trades around 0.7010 on Thursday at the time of writing, down 0.95% on the day, as the US Dollar continues to draw support from relatively strong US macroeconomic data and cautious market sentiment.

The Pound Sterling resumed its downtrend during the week, courtesy of heightened tensions in the Middle East and solid US employment data ahead of Friday's Nonfarm Payrolls report. At the time of writing, the GBP/USD trades at 1.3337, down 0.25%.

Rabobank’s Senior FX Strategist Jane Foley highlights that the Pound has recently outperformed the Euro, helped by fading expectations of Bank of England rate cuts, even though neither currency is seen as a safe haven.

MUFG’s Senior Currency Analyst Lee Hardman highlights that the Japanese Yen has held up relatively well despite the energy price shock, supported by expectations that the BoJ remains on track to raise rates, potentially as soon as April.

Commerzbank’s Charlie Lay highlights that the Indian Rupee has weakened as global Oil prices surge, pushing USD/INR above 92.00 for the first time.

NZD/USD trades lower around 0.5920 on Thursday at the time of writing, down 0.32% on the day, as the pair remains under pressure from a broadly firmer US Dollar (USd) and shifting expectations around New Zealand’s monetary policy outlook.

Rabobank’s Head of Macro Strategy Elwin de Groot highlights the European Commission’s Industrial Accelerator Act as a major step to rebuild the Eurozone industrial base, accelerate decarbonisation and reduce external dependencies.

EUR/JPY edges lower around 182.60 on Thursday at the time of writing, down 0.14% on the day, as the pair remains under pressure while the Japanese Yen (JPY) benefits from renewed safe-haven demand amid geopolitical crisis.

The EUR/USD pair claws back a majority of its early losses and rises to near 1.1625 during the European trading session on Thursday, but is still marginally down.

Eurozone Retail Sales, a key measure of consumer spending, surprisingly falls by 0.1% month-on-month (MoM) in January, while it was expected to grow 0.3%. In December, the consumer spending measure rose by 0.2%, revised positive from -0.5%.

Eurozone Retail Sales (YoY) above expectations (1.7%) in January: Actual (2%)

Eurozone Retail Sales (MoM) came in at -0.1% below forecasts (0.3%) in January

BNY strategist Geoff Yu argues that the sharp repricing of European natural gas futures has significantly overshot assumptions embedded in recent ECB staff projections.

The Japanese Yen (JPY) gives back its early gains and turns negative against the US Dollar (USD) during the European trading session on Thursday. The USD/JPY pair rises to near 157.35 as the US Dollar resumes its upside journey after a corrective move.

The USD/CAD pair trades flat at around 1.3645 during the European trading session on Thursday. The Loonie pair consolidates as the recovery move in the US Dollar (USD) after a slight correction has offset the strength in the Canadian Dollar.

Commerzbank’s Michael Pfister revisits international trade theory to explain why higher Oil prices and the US status as a net Oil exporter are supportive for the Dollar against the Euro.

AUD/USD pares its recent gains from the previous session, trading around 0.7050 during the early European hours on Thursday. The technical analysis of the daily chart indicates that the pair is remaining within the ascending channel pattern, indicating that bullish bias prevails.

The NZD/USD pair trades in negative territory around 0.5920 during the early European trading hours on Thursday. The New Zealand Dollar (NZD) softens against the Greenback on escalating conflict in the Middle East.

USD/CHF pares its recent losses from the previous session, trading around 0.7800 during the Asian hours on Thursday. The pair appreciates as the US Dollar (USD) gains ground, as the Iran conflict has entered its sixth day.

The EUR/JPY cross loses traction to near 182.35 during the early European session on Thursday. The Japanese Yen (JPY) edges higher against the Euro (EUR) as rising geopolitical tensions in the Middle East drive investors toward safe-haven assets. 

EUR/USD depreciates after registering modest gains in the previous session, trading around 1.1610 during the Asian hours on Thursday. The technical analysis of the daily chart suggests a persistent bearish bias as the EUR/USD pair remains within the descending channel pattern.

The Pound Sterling trades lower against its major currency peers, is down 0.22% around 1.3340 against the US Dollar (USD), during the Asian trade on Thursday.

The USD/JPY pair trades in negative territory near 156.85 during the Asian trading hours on Thursday. Escalating conflict in the Middle East leads to a safe-haven bid for the Japanese Yen (JPY) against the US Dollar (USD).

The NZD/USD pair clings to Wednesday’s gains near 0.5950 during the Asian trading session on Thursday. The Kiwi pair shows strength as the US Dollar’s (USD) rally hits a pause, with the US Dollar Index (DXY) struggling to extend gains above the fresh three-month high of 99.68 posted on Tuesday.

AUD/JPY depreciates after registering mild gains in the previous session, trading around 110.80 during the Asian hours on Thursday. The currency cross remains subdued following the release of Australia’s Trade Balance data.

The USD/CAD pair loses ground to near 1.3630 during the early Asian session on Thursday. The Canadian Dollar (CAD) gathers strength against the Greenback amid a jump in oil prices. Traders will take more cues from the US weekly Initial Jobless Claims reports later on Thursday. 

The EUR/USD pair trades in negative territory around 1.1635 during the early Asian session on Thursday. The US Dollar (USD) strengthens against the Euro (EUR) as escalating Middle East conflict boosts safe-haven flows.

GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session.

USD/JPY slipped 0.42% on Wednesday, pulling back to around 157.00 after pushing close to 157.90 earlier in the session.

AUD/USD jumped one-half of one percent on Wednesday, rallying back to around 0.7080 after dipping toward the 0.7000 level earlier in the week.