The EUR/USD pair gathers strength to around 1.1575 during the early Asian trading hours on Friday. The Euro (EUR) edges higher against the US Dollar (USD) on the European Central Bank (ECB) interest rate hike and improved risk sentiment.

The Pound Sterling ended Thursday’s session almost flat at around 214.70 as market sentiment fluctuated but ultimately improved after US President Donald Trump cancelled attacks and hinted at a possible deal in place. The GBP/JPY traded with gains of almost 0.04%.

The British Pound spent most of Thursday doing what everything else did, leaking lower while Washington and Tehran traded fire, then exploding higher when President Trump canceled the evening's planned strikes just after 17:30 GMT and declared a deal all but done.

USD/JPY spent the entire session glued to the area around 160.50, and it took the cancellation of a war, rather than anything out of Tokyo, to finally knock it lower.

The Australian Dollar spent most of Thursday pinned beneath the 0.7000 handle while Washington and Tehran traded fire for a second straight day.

The EUR/USD surges over 0.36% as the Greenback turns negative on the day, as US President Donald Trump cancelled strikes on Iran, saying that the US and Iran are ironing out the final points of a peace agreement. At the time of writing, the pair trades at 1.1579.

USD/JPY struggles for direction on Thursday as fears of intervention by Japanese authorities cap upside, even as the US Dollar (USD) strengthens amid renewed hostilities between the United States and Iran.

The AUD/USD pair trades near the 0.6980 level on Thursday, hovering near a two-month low as the Australian Dollar (AUD) remains pressured by cautious market sentiment and renewed US Dollar (USD) demand. At the time of writing, the pair trades at 0.6994, down 0.15% on the day.

The Pound Sterling registers losses of 0.19% on Thursday after the latest US inflation report reflected the impact of the Iran war on energy prices, while an escalation of hostilities between Washington and Tehran triggered a recovery in oil prices.

Brown Brothers Harriman’s (BBH) Elias Haddad reports the Bank of Canada (BoC) kept its policy rate at 2.25% for a fifth consecutive meeting and signaled no urgency to hike despite two-way optionality.

Scotiabank strategists Shaun Osborne and Eric Theoret report USD/JPY is steady but elevated, with recent gains already surpassing prior intervention-trigger levels. A 25 bps Bank of Japan (BoJ) hike on Tuesday is widely anticipated, and markets price nearly one more increase by December.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight renewed Canadian Dollar (CAD) weakness as softer Oil prices and geopolitical concerns push USD/CAD to new year-to-date highs.

EUR/USD struggles near two-month lows on Thursday as traders show a muted reaction to the latest European Central Bank (ECB) interest rate decision. Meanwhile, escalating tensions in the Middle East keep risk sentiment subdued and support the US Dollar (USD), leaving the Euro (EUR) on the defensive.

Royal Bank of Canada (RBC) economist Claire Fan notes that Canada’s Gross Domestic Product (GDP) contracted in Q1, but measures of excess slack such as the unemployment rate still align with prior tracking. Fan keeps its growth outlook unchanged, instead lowering potential GDP estimates.

Germany Current Account n.s.a. down to €13.8B in April from previous €23.6B

Brown Brothers Harriman’s (BBH) Elias Haddad notes USD/JPY is trading tightly around 160.50, just below its late-April pre-intervention high, with a 25 bps Bank of Japan (BoJ) rate hike to 1.00% already fully priced.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann maintain a negative stance on AUD/USD after the pair closed below 0.7000, though downside momentum is still described as modest. Intraday, they look for further slippage but doubts a clean break of 0.6975.

The Global Strategy Team at TD Securities reports that the Bank of Canada left rates unchanged at 2.25% and maintained a balanced tone. They expect the Bank to hold policy through 2026, with the next hike projected for early 2027.

USD/CAD advances toward 1.3975 on Thursday at the time of writing, up 0.23% on the day, with the US Dollar (USD) benefiting from renewed safe-haven demand amid persistent tensions in the Middle East.

ING’s Chris Turner argues that with a 25bp ECB hike and further tightening already priced, the Euro faces a high bar for gains. Markets discount about 75bp of tightening through early next year.

The British Pound (GBP) trades cautiously against its major currency peers during the European trading session on Thursday, down 0.1% to near 1.3350 against the US Dollar (USD).

The Australian Dollar (AUD) has given away previous gains and is trading lower for the third consecutive day against a stronger US Dollar (USD) on Thursday.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights EUR/USD trading defensively near 1.1530 ahead of an expected 25 bps European Central Bank (ECB) rate hike to 2.25% and updated projections likely downgrading growth.

EUR/JPY trades around 185.20 on Thursday at the time of writing, as market participants remain cautious ahead of the European Central Bank (ECB) monetary policy decision.

ING’s Frantisek Taborsky expects the Central Bank of Turkey (CBRT) to keep its policy rate at 37%, maintaining a tight stance and policy flexibility.

BNY’s Geoff Yu argues that Swiss Franc (CHF) positioning looks stretched as investors bet on policy tightening that the Swiss National Bank (SNB) is unlikely to deliver.

The USD/CAD pair attracts fresh buyers following an intraday dip to the 1.3930 area on Thursday and builds on the overnight bounce from the weekly low.

Societe Generale strategists highlight that EUR/USD remains under pressure after slipping below its 200-day moving average in May, with spot trading near a two‑month low.

Silver (XAG/USD) appreciates on Thursday, reaching session highs at $64.50 at the time of writing, after hitting two-and-a-half-month lows at $61.50 earlier on the day. News about ongoing negotiations between the US and Iran has soothed markets, providing some support to the ailing white metal.

USD/CHF halts its four-day winning streak, trading around 0.7990 during the European hours on Thursday. The technical analysis of the daily chart indicates the pair is moving upwards within the ascending channel pattern, signaling a persistent bullish bias.