UK May GDP rose 0.1% MoM, matching market expectations. The pound was largely steady after the release as attention remained on UK political developments. Ebury said the data underline a still-fragile recovery. Renewed tensions in the Middle East have kept firms on heightened alert. Earlier Thursday, media reports that incoming prime minister Burnham may appoint current home secretary Mahmood—seen as less supportive of expansionary fiscal policy—as chancellor pushed EUR/GBP to a 13-month low.

Spot palladium declined 2.00% intraday to $1,288.87/oz.

Talks between Israel and Lebanon in Rome concluded on the 15th (local time), with an Israeli official calling the round progressed smoothly. A Lebanese source said the sides reached preliminary agreement to establish two "pilot zones": one within an area currently under Israeli control and a second adjacent to Israeli deployments. The zones are intended as starting points to phase Israeli troop withdrawals and adjust military deployments. An Israeli official said additional preparatory work and further agreements are required before initiating phase one, work that is expected to conclude in the coming days. Sources added Israel wants the verification committee overseeing demilitarization of the pilot zones to include Israel, the US and a third party, excluding France and the UN. Israel has not commented officially.