Banco de México, known as Banxico due to its Spanish acronym, unexpectedly cut the country’s main interest rate from 7% to 6.75%.

The Euro (EUR) edges lower against the US Dollar (USD) on Thursday, with EUR/USD extending losses for a third consecutive session as ongoing geopolitical tensions surrounding the US-Israel war with Iran keep the Greenback firmly bid across the board.

NZD/USD extends its downward move on Thursday, trading around 0.5770 at the time of writing, down 0.65% on the day. The pair is now on its third consecutive day of losses after failing to hold near the 0.5900 area reached last week.

USD/CHF extends gains on Thursday as broad-based US Dollar (USD) strength persists amid rising Middle East tensions, while the Swiss Franc (CHF) struggles to gain traction as traders remain cautious about potential intervention from the Swiss National Bank to curb excessive currency appreciation.

The USD/JPY trades higher near the 159.70 level on Thursday, March 26, maintaining an overall bullish bias as the US Dollar (USD) remains supported while the Japanese Yen (JPY) stays under pressure.

The Canadian Dollar (CAD) stays on the back foot against the US Dollar (USD) on Thursday, as rising Middle East tensions and ongoing uncertainty around US-Iran negotiations keep the Greenback firmly supported across the board.

The GBP/USD consolidates around 1.3360 on Thursday amid heightened tensions in the Middle East, as US President Donald Trump exerts pressure on Iran to reach a deal. Solid US jobs data maintained the status quo, which remains controlled by geopolitics.

TD Securities expects UK Retail Sales for February to decline, projecting -0.6% month-on-month versus the market’s -0.7% and January’s 1.8%. They bank attributes the pullback to fading idiosyncratic supports and adverse weather weighing on physical store traffic.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that USD/CAD continues to grind higher as haven demand for the US Dollar dominates, with the pair trading well above an estimated fair value of 1.3543.

AUD/USD trades around 0.6920 on Thursday at the time of writing, down 0.35% on the day, and remains close to its monthly lows amid a bearish consolidation phase. The pair struggles to stage any meaningful rebound as the US Dollar (USD) continues to draw solid support.

BNY’s Head of Markets Macro Strategy Bob Savage notes that the central bank of Germany, Bundesbank President Joachim Nagel has opened the door to an April European Central Bank (ECB) rate hike if Middle East‑driven energy prices elevate inflation risks.

HSBC Global Research expects New Zealand Dollar (NZD) to stay under pressure versus USD in coming weeks, even as markets price further Reserve Bank of New Zealand (RBNZ) tightening over 12 months.

Brown Brothers Harriman’s (BBH) Elias Haddad notes USD/JPY is trading just below 160.00 as the Bank of Japan (BoJ) releases new underlying CPI indicators, which remain below the 2% target but are converging toward it.

The Pound (GBP) is trading lower against the Japanese Yen (JPY) on Thursday, snapping a four-day positive streak.

USD/CHF trades higher around 0.7930 on Thursday, up 0.15% on the day, as the US Dollar (USD) maintains a bullish tone amid heightened geopolitical uncertainty. The pair is supported by sustained demand for the Greenback, driven by fading hopes for a ceasefire between the United States (US) and Iran.

Commerzbank analysts Michael Pfister and Norman Liebke report that the Bank of Mexico (Banxico) is expected to leave rates unchanged, with markets no longer pricing cuts in the near term after the Iran conflict.

Brazil Mid-month Inflation above forecasts (0.29%) in March: Actual (0.44%)

The USD/INR pair is expected to open higher on Friday after a holiday in Indian markets on Thursday due to Ram Navami celebrations.

ING's Francesco Pesole focuses on Bank of England (BoE) communication, noting mixed but generally hawkish tones from Megan Greene and Sarah Breeden, while Alan Taylor remains dovish. He expects greater room for dovish repricing in the Pound curve under a de-escalation scenario.

BNY’s Head of Markets Macro Strategy Bob Savage highlights growing pressure on the South African Rand as ZAR leads high‑yield EM outflows ahead of the SARB decision.

The New Zealand Dollar (NZD) heads south against the US Dollar (USD) for the third consecutive day, extending its reversal from last week's highs, a few pips short of 0.5900, to session lows at 0.5781 on Thursday’s European trading session.The risk-sensitive Kiwi has been hit by a sour market sentim

MUFG’s Derek Halpenny highlights that the ECB is signalling a tougher reaction function to an energy-driven inflation shock, contrasting with past cycles.

The Pound Sterling trades marginally lower against its major currency peers, edging down to near 1.3350 against the US Dollar (USD) during the European trading session on Thursday.

The US Dollar (USD) maintains an immediate bullish tone against the Japanese Yen (JPY) on Thursday, extending its rebound from Monday’s lows at 158.00 to levels above 159.50 so far.

The Euro (EUR) remains practically flat against the US Dollar (USD) at the time of writing on Thursday, consolidating losses from the previous two days.

UOB economist analysts Quek Ser Leang Lee and Sue Ann highlight that EUR/USD failed to sustain recent gains, slipping to 1.1554 as downside momentum picked up. Intraday, they see scope for a further drift toward 1.1530 while keeping 1.1480 intact as major support.

Rabobank’s Senior FX Strategist Jane Foley notes that despite the Reserve Bank of Australia being the only G10 central bank to hike rates last week, the Australian Dollar has underperformed recently versus peers. She links this to prior outperformance and shifting G10 rate expectations.

Societe Generale analysts note that USD/MXN has formed an interim low near 17.10 and is in a short-term rebound within a broad consolidation. The 18.00/18.20 area, aligned with the 200-DMA and January peak, is highlighted as key resistance.

Eurozone M3 Money Supply (3m): 3% (February)

Eurozone M3 Money Supply (YoY) below expectations (3.3%) in February: Actual (3%)