Makro

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining firm after two days of gains and trading around 98.60 during the early European hours on Thursday.

Danske Research Team highlights that Euro area April flash PMIs (Purchasing Managers' Index) are a key input ahead of the next European Central Bank (ECB) meeting, with Manufacturing PMI expected to drop below 50 while Services PMI holds at 50.2.

The EUR/GBP cross trades with mild gains around 0.8675 during the early European session on Thursday. However, the potential upside for the cross might be limited due to hot UK inflation data.

The AUD/JPY cross attracts some sellers to around 113.95 during the early European session on Thursday. Uncertainty regarding Iran's participation in further peace talks could provide some support to a safe-haven currency such as the Japanese Yen (JPY) against the Australian Dollar (AUD).

EUR/JPY remains subdued for the third successive day, trading around 186.60 during the Asian hours on Thursday. The currency cross loses ground as the risk-sensitive Euro (EUR) faces challenges amid increased risk aversion due to ongoing Middle East uncertainty.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its gains for the third successive day and trading around 98.70 during the Asian hours on Thursday.

Societe Generale analysts Kunal Kundu and Galvin Chia note that Bank Indonesia (BI) kept its policy rate at 4.75% and retained its 2.5% ±1% inflation target, emphasizing a stability-first approach.

ING’s Deepali Bhargava notes that Bank Indonesia (BI) kept its policy rate at 4.75%, focusing on Indonesian Rupiah (IDR) stability rather than tightening.

The US Dollar Index (DXY) held firm near the 98.60 area as investors continued to favor the Greenback amid lingering uncertainty around the US-Iran conflict.

The USD/JPY climbed near the 159.30 price region on Wednesday, consolidating around recent highs as markets digest fresh developments in the Middle East and shift monetary policy expectations.

Societe Generale’s Anatoli Annenkov expects the European Central Bank (ECB) to keep rates unchanged next week as focus shifts toward Euro Area growth and medium-term core inflation.

EUR/GBP trades on the back foot on Wednesday as UK inflation data lifts the British Pound (GBP), pressuring the Euro (EUR), with the cross extending losses for the second consecutive day. At the time of writing, EUR/GBP is trading around 0.8680, its lowest level since March 31.

ING strategists Francesco Pesole, Frantisek Taborsky and Chris Turner note that the US Dollar (USD) was largely unmoved by Kevin Warsh’s Senate hearing, as he defended Federal Reserve independence and avoided clear policy guidance.