European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Friday that “we are not currently in a currency war but rather a trade war situation.”
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, trades with a negative bias for the second straight day on Friday, though the intraday downtick lacks bearish conviction.
The GBP/USD pair edges higher to around 1.3310 during the Asian trading hours on Friday. The Greenback weakens against the Pound Sterling (GBP) as downside surprises in the US economic data this week raise bets of more Federal Reserve (Fed) rate cuts this year.
EUR/USD has recovered its daily losses, trading around 1.1200 during the Asian hours on Friday. The pair receives support as the US Dollar (USD) weakens following the recent economic data released on Thursday.
Bank of Japan (BoJ) board member Toyoaki Nakamura said on Friday that “uncertainty over economic outlook heightening, so cautious monetary policy approach is necessary.”
Gold price (XAU/USD) remains depressed through the early European session on Friday and for now, seems to have stalled the previous day's sharp recovery from the $3,120 region, or the lowest level since April 10.
NZD/USD halts its two-day losing streak, trading around 0.5890 during the Asian hours on Friday. The pair advances after the release of the Reserve Bank of New Zealand (RBNZ) Inflation Expectations for Q2 2025.
New Zealand's (NZ) inflation expectations accelerated on a 12-month and a two-year time frame for the second quarter of 2025, the Reserve Bank of New Zealand’s (RBNZ) latest monetary conditions survey showed on Friday.
The Japanese Yen (JPY) retains its positive bias against a weaker US Dollar (USD) heading into the European session, with the USD/JPY pair struggling to register any recovery from the weekly low touched earlier this Friday.
The Indian Rupee (INR) loses momentum on Friday. The renewed US Dollar (USD) demand from importers and continued foreign fund outflows weigh on the Indian currency.
The Australian Dollar (AUD) halts its two-day losing streak against the US Dollar (USD) on Friday. The risk-sensitive AUD/USD pair benefits from easing global trade tensions.
Japan's Economy Minister Ryosei Akazawa said on Friday that the government will continue to demand a review of US tariffs and take all necessary steps to offer liquidity aid to impacted firms.
The People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Friday at 7.1938 as compared to the previous day's fix of 7.1963 and 7.2085 Reuters estimate.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.20 during the Asian trading hours on Friday. The WTI price edges lower on expectations that the United States (US) and Iran may soon reach a deal over Tehran’s nuclear program.
Japan’s Finance Minister Shunichi Kato said on Friday that he would seek to meet US reasury Secretary Scott Bessent to discuss foreign exchange. Kato added that excessive FX moves damage the Japanese economy.
The Japanese economy contracted by 0.2% over the quarter in the first quarter (Q1) of 2025, following a growth of 0.6% in the final quarter of 2024, the preliminary reading released by Japan’s Cabinet Office showed on Friday. Markets expected a 0.1% decline.
The Financial Times reported late Thursday that the Trump administration has planned to put a number of Chinese chipmaking companies on an export blacklist (the “entity list”).
EUR/USD whipsawed on Thursday, briefly dipping back below the 50-day Exponential Moving Average (EMA) and tapping the 1.1000 level for the second time in a week. A late recovery pushed Fiber bids back to where they started the trading day, near the 1.1200 handle.
GBP/USD turned lower on Thursday, shaving off a few points and keeping bids stuck to a near-term consolidation range just south of 1.3300 as markets got more or less what they wanted from economic data releases during both the London and American market sessions.
The USD/CAD pair loses ground to near 1.3955 during the early Asian session on Friday. The Greenback weakens against the Canadian Dollar (CAD) as US economic data fueled speculation that the Federal Reserve (Fed) will resume interest rate cuts in the coming months.
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