The EUR/JPY cross loses momentum to near 185.10 during the early European session on Thursday. Escalations in the US-Iran conflict boost the safe-haven currency, such as the Japanese Yen (JPY) and act as a headwind for the cross. 

UOB’s Quek Ser Leang and Lee Sue Ann report EUR/USD closed almost unchanged near 1.1625 after a brief spike to 1.1660. They see slightly stronger downside momentum that could test 1.1610, though a move to the key 1.1590 support is viewed as unlikely for now.

The Japanese Yen (JPY) is marginally lower against the US Dollar (USD), but outperforms its other peers during the late Asian trading session on Thursday. The USD/JPY is slightly higher to near 159.55, close to its four-week high of 159.65 posted earlier in the day.

The USD/CHF pair gains momentum to around 0.7895 during the early European trading hours on Thursday. Renewed tensions in the Middle East boost the US Dollar (USD) against the Swiss Franc (CHF).

The USD/CAD pair is seen building on the previous day's breakout momentum through the 1.3810-1.3815 confluence hurdle and gaining positive traction for the third straight day on Thursday.

The Australian Dollar (AUD) slumps over 0.5% to near 0.7100 during the Asian trading session on Thursday. The Aussie par slumps as the antipodean underperforms its peers due to risk-off market sentiment and diminished hawkish Reserve Bank of Australia (RBA) bets.

Silver price (XAG/USD) tumbles to around $72.30, the lowest since May 6, during the early European trading hours on Thursday. The precious metal faces some selling pressure amid renewed tensions between the US and Iran. 

The Euro (EUR) slides 0.3% to near 1.1590 against the US Dollar (USD) during the Asian trading session on Thursday.

The New Zealand Dollar (NZD) drops to near 0.5883 against the US Dollar (USD) during the Asian trading session on Thursday, following the New Zealand (NZ) budget 2026 announcement.

The GBP/USD pair attracts some sellers near 1.3400 during the Asian trading hours on Thursday. The British Pound (GBP) weakens against the US Dollar (USD) on fresh geopolitical developments.

The USD/JPY pair trades with a positive bias for the third straight day and touches a four-week high, around the 159.60 region, during the Asian session on Thursday.

The USD/CAD pair attracts buyers for the third consecutive day and trades near mid-1.3800s, or its highest level since April 13, during the Asian session on Thursday.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 6.8240 compared to the previous day's fix of 6.8291 and 6.7861 Reuters estimate.

The AUD/USD pair remains depressed for the third straight day and trades around the 0.7130 region during the Asian session, just above the weekly low touched the previous day.

South Korea BoK Interest Rate Decision meets forecasts (2.5%)

The EUR/USD pair trades in negative territory around 1.1620 during the early Asian session on Thursday. Escalating tensions between the United States (US) and Iran continue to weigh on riskier assets, such as the Euro (EUR), against the US Dollar (USD).

The Bank of Japan (BoJ) and Ministry of Finance bought themselves three weeks of breathing room.

Sterling traders are spending the week parsing the wrong calendar.

The Aussie Dollar finally tripped on Wednesday, dropping nearly 2% against the New Zealand Dollar. AUD/NZD had been grinding to generational highs near 1.2300, fuelled by a story of relative central bank divergence that always looked a little overcooked.

AUD/USD attracts sellers on Wednesday as softer-than-expected Australian inflation data weighs on the Australian Dollar (AUD), while persistent uncertainty surrounding a potential US-Iran peace deal keeps the US Dollar (USD) supported.

The British Pound edges lower against the US Dollar as cautious market sentiment surrounding US-Iran talks supports the Greenback. At the time of writing, GBP/USD is trading around 1.3429, remaining on the back foot for a second straight day.

The Euro advances by 0.21% on Wednesday as risk appetite improves on news that Iran presented a draft framework to the US to end the conflict, which was cheered by financial markets. At the time of writing, the EUR/USD trades at 1.1649 after bouncing off daily lows of 1.1623.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights New Zealand Dollar (NZD) outperformance after a hawkish hold from the Reserve Bank of New Zealand (RBNZ).

Scotiabank’s Analyst Team notes the Canadian Dollar (CAD) is slightly weaker versus the US Dollar (USD), extending losses to levels last seen in mid-April as wider US-Canada yield spreads weigh.

Bob Savage notes that BoJ Governor Kazuo Ueda frames current oil price shocks as a broad test of Japan’s inflation regime, amplified by Yen weakness and cost pressures.

USD/CAD gains traction on Wednesday as easing Oil prices pressure the Canadian Dollar, offsetting the impact of a softer US Dollar as traders digest fresh headlines surrounding a potential US-Iran peace deal. At the time of writing, the pair is trading around 1.3834, hovering near six-week highs.

MUFG’s Derek Halpenny says rising European yields reflect expectations that the ECB will deliver a 25bp rate hike on 11 June, with baseline inflation projections set to be revised higher.

The Canadian Dollar (CAD) is experiencing a period of relative stagnation against the US Dollar (USD), failing to match the upward momentum seen across other major G10 currencies. 

BNY’s Bob Savage highlights that the Reserve Bank of New Zealand (RBNZ) kept the Official Cash Rate (OCR) at 2.25% in a split decision but delivered a hawkish message, lifting its OCR path and inflation projections.

TD Securities’ Global Rates, FX & Commodities Strategy team reviews April Australian CPI, noting headline inflation undershot consensus while the trimmed mean matched expectations.