EUR/USD
The EUR/USD pair tumbles to a near two-week low around 1.1785 during the early Asian session on Thursday. The US Dollar (USD) strengthens against the Euro (EUR) on hawkish FOMC minutes that revived speculation about potential interest rate hikes if inflation remains elevated.
GBP/USD
The Pound Sterling (GBP) trades with caution near 1.3500 against the US Dollar (USD) during the European trading session on Thursday, the lowest level seen in almost four weeks. The GBP/USD pair is under pressure as cooling United Kingdom (UK) inflation and job market conditions have weighed heavily on the British currency.
USD/JPY
USD/JPY bounced on Wednesday after the Japanese Yen’s (JPY) recent rally finally ran out of steam, which has been its best weekly performance since November 2024. Despite a growth miss in Japanese Gross Domestic Product (GDP) figures earlier this week, Bank of Japan (BoJ) rate hike expectations remain firmly in place; former board member Adachi said an April move is likely, and the International Monetary Fund (IMF) reiterated that Japan should continue normalizing policy. Thursday’s Japanese National Consumer Price Index (CPI) inflation data is critical: a firm core reading would reinforce the case for BoJ tightening and could push the Yen stronger again, while a soft print would give the pair room to extend Wednesday’s bounce.
AUD/USD
The Australian Dollar (AUD) surrenders a majority of its early gains and flattens to near 0.7045 against the US Dollar (USD) during the European trading session on Thursday. The Aussie pair attracted significant bids earlier in the day after the release of the Australian labor market data for January.
NZD/USD
The NZD/USD pair trades on a flat note around 0.5965 during the early European trading hours on Thursday. However, a dovish hold from the Reserve Bank of New Zealand (RBNZ) weighs on the Kiwi against the US Dollar (USD). The preliminary reading of the US Gross Domestic Product (GDP) for the fourth quarter (Q4), the Personal Consumption Expenditures (PCE) Price Index, and the S&P Global Purchasing Managers Index (PMI) reports will be the highlights later on Friday.
USD/CAD
Scotiabank Scotiabank analysts Shaun Osborne and Eric Theoret note the Canadian Dollar is slightly weaker but holding above 1.37, with USDCAD tracking broader Dollar moves. Their fair value estimate has edged up to 1.3625, reflecting less favourable drivers for the CAD. Technically, they see a broad consolidation, with strong resistance in the upper 1.36s and a potential bearish triangle between 1.3695/00 and 1.3525.
USD/CHF
USD/CHF remains in the negative territory after paring daily losses, trading near 0.7720 during the Asian hours on Thursday. The pair struggles as the Swiss Franc (CHF) draws safe-haven support amid persistent tensions between the United States and Iran, alongside stalled Ukraine-Russia talks. Traders are also awaiting Switzerland’s Trade Balance and Industrial Production data later in the day.
CRUDE OIL
Oil prices rose on Thursday as the U.S. and Iran attempted to ease a standoff in talks over Tehran’s nuclear programme while both sides heightened military activity in the key oil-producing region.
GOLD
Gold (XAU/USD) sticks to modest intraday gains, above the $5,000 psychological mark, through the first half of the European session, though it lacks bullish conviction amid mixed cues. The third round of US-mediated negotiations between Ukraine and Russia concluded in Geneva on Wednesday without any major breakthrough. This underscores that substantive disagreements remain over the status of eastern Ukrainian territories occupied by Russian forces. Furthermore, reports suggest that the US military is ready to attack Iran as early as this weekend. Although US President Donald Trump has not made a final decision yet on whether to authorize an armed confrontation, this keeps geopolitical risks in play and underpins the safe-haven commodity.
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