The US Dollar maintains a strong position near 98.65 as the European trading session approaches, supported by ongoing geopolitical tensions between the US and Iran. The upcoming preliminary reading of the S&P Global US Purchasing Managers Index is set to capture attention later on Thursday. Markets expect a modest stabilization in business activity after a lackluster performance in March. The Manufacturing PMI figure is projected to see a modest increase to 52.5 in April, up from the prior reading of 52.3. Services PMI is anticipated to increase to 50.0 in April, compared to the previous figure of 49.8. The table below presents the percentage change of the US Dollar relative to the major currencies listed today. The US Dollar demonstrated notable strength in comparison to the New Zealand Dollar. The heat map illustrates the percentage fluctuations of key currencies relative to one another. The base currency is selected from the left column, whereas the quote currency is chosen from the top row.

For instance, selecting the US Dollar from the left column and tracing the horizontal line to the Japanese Yen will show the percentage change in the box, indicating USD relative to JPY. The United States is prolonging the ceasefire with Iran following a request from Pakistan, while US President Donald Trump anticipates a consolidated proposal from Iran. Nevertheless, tensions persist as Tehran maintains a firm hold on the Strait of Hormuz, overseeing the transit through this crucial trade route and engaging in hostile actions against vessels. Trump stated that there is “no time pressure” regarding the ceasefire or discussions with Iran and emphasized that there is “no time frame” for when the conflict may conclude. In the meantime, Iran’s leading negotiator and parliament speaker, Mohammad Bagher Ghalibaf, remarked that Israel’s aggressive actions and “flagrant” violations of the ceasefire rendered the reopening of the Strait of Hormuz “impossible.”

The EUR/USD pair is presently positioned around 1.1700, undergoing consolidation following periods of volatility influenced by geopolitical tensions in the Middle East. The USD/JPY is showing strength, approaching multi-decade highs around 159.60 during the European morning on Thursday. Japanese authorities have heightened their warnings and are ready to implement “decisive” measures as the pair remains near the significant 160.00 level. GBP/USD moves downwards beneath 1.3500, even in light of stronger UK Consumer Price Index inflation figures. The headline inflation increased to 3.3% in March, compared to 3.0% previously, aligning with market expectations.

AUD/USD experiences a decline to 0.7150 during the European morning session. Data released on Thursday indicated that the preliminary reading of Australia’s S&P Global Manufacturing Purchasing Managers Index increased to 51.0 in April, up from 49.8 in the prior reading. Gold has declined nearly 0.40% as markets contend with persistent tensions and a blockade of the Strait of Hormuz. The ongoing obstruction of the Strait of Hormuz has led to increased energy prices, heightening concerns about inflation and complicating the prospects for interest rate reductions.