Rabobank Senior FX Strategist Jane Foley discusses EUR/GBP in light of shifting expectations for the European Central Bank (ECB) and Bank of England (BoE). She notes that EUR/GBP has traded with a downside bias recently but sees this fading as spring progresses.

AUD/USD rises on Wednesday and trades around 0.7140 at the time of writing, up 0.28% on the day. The pair benefits from an improved risk environment after reports suggested that new discussions could take place between the United States (US) and Iran before the two-week ceasefire expires.

Brazil Retail Sales (MoM) below expectations (1%) in February: Actual (0.6%)

The US Dollar (USD) is posting moderate gains against the Japanese Yen (JPY) on Wednesday, returning to levels past 159.00 to partially reverse the 0.5% depreciation witnessed over the last two days.

NZD/USD trades around 0.5900 on Wednesday at the time of writing, virtually unchanged on the day but still close to a one-month high reached on Tuesday at 0.5921.

The US Dollar (USD) is trimming some losses against the Canadian Dollar (CAD) on Wednesday. The pair trades at 1.3775 at the time of writing, after bouncing up from Tuesday’s lows near 1.3730, although it remains more than 1% below last week’s highs.

Germany 30-y Bond Auction: 3.57% vs 3.42%

Danske Bank’s Danske Research Team says ECB President Lagarde reiterated a data-dependent stance, offering no firm forward guidance. The bank argues this reduces the likelihood of an April move unless key data show clear upside price pressures.

The Eurozone industrial sector activity rises 0.4% in February, faster than estimates of 0.3%, according to data published by Eurostat on Wednesday. In January, the Industrial Production data was declined by 0.8%, revised higher from -1.5%.

Eurozone Industrial Production s.a. (MoM) came in at 0.4%, above forecasts (0.3%) in February

Eurozone Industrial Production w.d.a. (YoY) came in at -0.6%, above expectations (-1%) in February

The GBP/USD pair trades flat around 1.3565 during the European trading session on Wednesday, but is close to its almost two-month high of 1.3590 posted the previous day.

ING’s Francesco Pesole sees downside risks to Australia’s March employment data and a possible uptick in unemployment, but does not expect this to derail a May rate hike by the RBA.

MUFG’s Derek Halpenny notes EUR/USD has returned to pre-conflict levels despite severe Middle East disruptions and higher energy prices, helped by stable equities and only moderate Oil gains.

The Euro (EUR) posts marginal gains against the British Pound (GBP) on Wednesday and extends losses for the third consecutive day, testing April lows at the 0.8685 area, which, so far, has held the bears.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann report that USD/JPY fell to 158.59 and closed at 158.77, with downside momentum starting to build.

ING’s Francesco Pesole highlights that Bank of England (BoE) tightening expectations have eased further, with officials sounding less hawkish than the European Central Bank (ECB).

Here is what you need to know on Wednesday, April 15:

Commerzbank’s Antje Praefcke notes that recent headlines around a possible diplomatic solution in the Middle East war have weakened the Dollar and supported EUR/USD. She argues FX may stay relatively muted until there is clearer evidence on the conflict path and a reliable easing of tensions.

The GBP/JPY cross trades with a positive bias for the eighth straight day and sits near mid-215.00s, close to the July 2008 swing high during the early European session on Wednesday.

The (EUR) is trading practically flat against the US Dollar (USD) on Wednesday, changing hands at 1.1785 at the time of writing, following a nearly 2.5% rally over the previous seven trading days.

EUR/JPY moves little after registering little losses in the previous day, trading around 187.30 during the early European hours on Wednesday.

OCBC strategists Sim Moh Siong and Christopher Wong note that the Australian Dollar (AUD) has been restrained by a sharp slump in confidence despite hawkish Reserve Bank of Australia (RBA) rhetoric.

The USD/CAD pair struggles to capitalize on an intraday uptick and trades around the 1.3770-1.3775 region, up less than 0.05% for the day heading into the European session on Wednesday.

France Consumer Price Index (EU norm) (MoM) in line with forecasts (1.1%) in March

France Consumer Price Index (EU norm) (YoY) above forecasts (1.9%) in March: Actual (2%)

The Australian Dollar (AUD) outperforms its major currency peers, trading 0.23% higher to near 0.7137 against the US Dollar (USD), during the early European session on Wednesday.

The Indian Rupee (INR) opens higher against the US Dollar (USD) after a holiday the previous day due to Dr. Baba Saheb Ambedkar Jayanti.

The USD/CHF pair trades flat around 0.7812 during the late Asian trading session on Wednesday, but is still close to its monthly low of 0.7790 posted the previous day.

EUR/USD remains calm after halting its seven-day winning streak, trading around 1.1790 during the Asian hours on Wednesday. The daily chart technical analysis indicates a bullish bias, as the pair is moving upwards within an ascending channel.