EUR/USD extends its advance for a second consecutive day on Wednesday, climbing to one-week highs as improving optimism around the US-Iran war lifts risk sentiment, pushing the Euro (EUR) higher and weighing on the US Dollar (USD).

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is only slightly firmer versus the Dollar (USD) despite broad USD weakness, but sees scope for a meaningful CAD recovery after a 1.4% Q1 decline.

GBP/JPY rebounds on Wednesday, as signs of easing geopolitical tensions between the US and Iran improve market sentiment and support risk appetite.

UOB analysts Quek Ser Leang and Lee Sue Ann highlight a sharp USD/JPY drop from near 160.00 to around 158.70, with scope for further declines toward 158.00 while a sustained move below that level is not yet anticipated.

USD/JPY trades around 158.50 on Wednesday at the time of writing, down 0.14% on the day after touching a little over a one-week low near 158.27 earlier in the day.

ING’s Francesco Pesole writes that EUR/GBP volatility has reflected shifting rate differentials, but Bank of England (BoE) pricing may fall faster than for the European Central Bank (ECB) .

The US Dollar (USD) is trading lower across the board on Wednesday, extending its reversal against the Swiss Franc (CHF) to session lows at 0.7925 so far, from highs above 0.8040 highs on Tuesday.Investors’ appetite for risk is crushing the Greenback on Wednesday, following comments by US President

The Australian Dollar (AUD) is outperforming most of its peers on Wednesday, and extends gains against the US Dollar (USD), reaching the mid-range of 0.6900s, from 0.6833 lows on Tuesday, fuelled by higher risk-appetite amid hopes of a swift end to the Iran war.

UOB analysts Quek Ser Leang and Lee Sue Ann highlight a sharp EUR/USD rebound from 1.1446 to 1.1563, with scope for further gains toward 1.1595 while 1.1620 is seen as strong resistance.

EUR/GBP trades around 0.8725 on Wednesday at the time of writing, down 0.10% on the day.

AUD/JPY gains ground for the second consecutive trading day, trading around 110.10 during the European hours on Wednesday. The currency cross appreciates as the risk-sensitive Australian Dollar (AUD) receives support amid de-escalating Middle East tensions.

Eurozone Unemployment Rate above expectations (6.1%) in February: Actual (6.2%)

The Euro (EUR) accelerated its recovery against the Japanese Yen (JPY) on Wednesday, reaching session highs above 183.80, from 182.65 lows on Monday, fuelled by the release of stronger-than-expected Eurozone manufacturing figures and a brighter market mood.

The EUR/USD pair extends Tuesday’s recovery on Wednesday, trading 0.3% higher to near 1.1600 during the European session. The major currency pair gains as demand for safe-haven assets has diminished due to increased hopes of a ceasefire in the Middle East.

Societe Generale analysts Reo Sakida and Jin Kenzaki highlight stronger‑than‑expected resilience in Japan’s non‑manufacturing sector in 1Q, based on the 4Q25 Tankan survey.

Eurozone HCOB Manufacturing PMI above forecasts (51.4) in March: Actual (51.6)

Germany HCOB Manufacturing PMI came in at 52.2, above expectations (51.7) in March

France HCOB Manufacturing PMI below forecasts (50.2) in March: Actual (50)

The GBP/JPY cross shows some resilience below the 100-day Simple Moving Average (SMA) for the second consecutive day and gains some positive traction on Wednesday.

ING’s Francesco Pesole highlights that hawkish European Central Bank rhetoric is making Euro front-end rates stickier on the downside versus the US, where Fed easing is more easily priced.

NZD/USD extends its gains for the second successive day, trading around 0.5760 during the European hours on Wednesday. The technical analysis of the daily chart signals an ongoing bearish bias as the pair remains within a descending channel pattern.

Italy HCOB Manufacturing PMI came in at 51.3, above forecasts (50.9) in March

The USD/JPY pair extends its losing streak for the third trading day on Wednesday, trading 0.26% lower to near 158.30 during the European session.

Switzerland SVME - Purchasing Managers' Index came in at 53.3, above expectations (47) in March

Here is what you need to know on Wednesday, April 1:

Silver (XAG/USD) recovery has stalled below the $75.00 resistance area on Wednesday, yet the immediate upside bias remains intact after three consecutive trading days of gains.

The GBP/USD pair is seen building on the overnight bounce from the 1.3160 area, or its lowest level in over four months, and gaining positive traction for the second consecutive day.

Danske Research Team notes that EUR/USD has rebounded above 1.15 as risk sentiment improves with hopes of a US-Iran de-escalation. They highlight that lower global yields and sharply lower energy prices have supported the Euro against the Dollar.

The USD/CHF pair is down 0.35% to near 0.7960 during the early European trading session on Wednesday. The Swiss Franc pair faces selling pressure as the US Dollar (USD) declines further due to intensifying expectations of a ceasefire in the Middle East.

The US Dollar (USD) is trading moderately lower on Wednesday, with the Canadian Dollar a tad firmer amid a cautious appetite for risk, following comments by US President Donald Trump, suggesting a quick end to the Iran war.