The forex market is currently steady as traders await upcoming central bank meetings, particularly from the European Central Bank (ECB) and the Bank of England (BOE). The ECB is in a hiking cycle with one consecutive rate increase and is scheduled to meet on June 11, while the BOE is on hold after its last rate decision, with its next meeting on June 18. Meanwhile, the Reserve Bank of Australia (RBA) continues its hiking cycle, having raised rates three times consecutively, with the next meeting not until mid-2026. The Federal Reserve (Fed) remains on hold after three consecutive unchanged rate decisions, and the Bank of Japan (BOJ) has recently started a hiking cycle as well, marking a notable shift in its policy path, with its next meeting scheduled for late July. The absence of new economic data today means market participants are focused on central bank guidance and upcoming policy decisions as the main driver of price moves and sentiment.
Among major currency pairs, EUR/USD is the most significant, holding steady at 1.15 midday in Tokyo. The euro’s position reflects cautious sentiment ahead of the ECB’s meeting, where further rate increases are expected given the ongoing hiking cycle. This steadiness matters because any shift in ECB tone could influence the dollar’s strength globally, impacting trade and investment flows. Traders are watching for signals that the ECB will maintain its tightening path, which would support the euro against the dollar in the medium term.
Other notable pairs show little intraday movement but remain influenced by central bank policies. GBP/USD is steady around 1.34, reflecting the Bank of England’s current pause in rate changes after holding rates steady at 3.75%. The Australian dollar remains at 0.70 versus the dollar, supported by the RBA’s ongoing tightening cycle that has seen three consecutive hikes. The New Zealand dollar also holds at 0.59, while USD/CHF and USD/CAD remain unchanged, showing limited volatility ahead of key policy meetings in Europe and the UK. These pairs are likely to react when those meetings provide fresh guidance.
The Tokyo morning session saw limited volatility as traders awaited fresh cues from central banks, resulting in sideways price action across major pairs. Intraday momentum is subdued, with market participants reluctant to take large positions before the ECB and BOE meetings. Looking ahead to the London open, attention will turn to potential shifts in risk sentiment depending on any updates or commentary from European policymakers. Given the ECB’s ongoing hiking cycle and the BOE’s on-hold stance, volatility could increase as traders interpret how these contrasting policies might affect the dollar and euro, setting the tone for the afternoon session.