investingLive European FX news wrap: US stocks surge as US-Iran tensions ease

The article highlights significant developments in the European session, particularly focusing on UK GDP data, which surpassed expectations but caused a muted market reaction due to the BoE's focus on inflation for future rate decisions. Additionally, a Bloomberg report suggested that the Bank of Japan (BoJ) is increasingly attentive to the weakening yen and its implications for inflation. This has raised the odds of a March rate hike to 22%, potentially supporting the yen in the short term. In the US markets, stocks have rallied significantly following comments from Trump regarding easing tensions with Iran, lifting S&P 500 and Nasdaq futures. The easing fears of conflict are seen as a catalyst for potential new all-time highs. However, the FX market remains relatively stable, with minor fluctuations in major pairs and Treasury yields. Precious metals have regained some losses, but still show a negative trend overall. The upcoming US Jobless Claims data is anticipated but unlikely to create substantial shifts in market expectations.