The Euro found some respite on Friday versus its counterpart the Greenback, which enjoyed a short-live rally of just two days, but erased Thursday’s gains on Friday as depicted by the US Dollar Index (DXY).

The Canadian Dollar (CAD) climbed sharply on Friday, adding half a percent against the US Dollar (USD) after January labor market data showed the unemployment rate dropping to 6.5%, its lowest reading since September 2024.

Brown Brothers Harriman (BBH) analysts note the Reserve Bank of India kept its policy rate at 5.25% after earlier cuts and signaled an end to easing while retaining a neutral stance. Despite swaps pricing in future hikes, Governor Malhotra stressed steady rates over the next year.

MUFG Bank analysts Lin Li, Michael Wan, and Lloyd Chan note that Japan’s 8 February election is reinforcing weakness in the Japanese Yen, with USD/JPY drifting back toward 160 after a brief correction.

The Pound Sterling recovers on Friday, up by 0.60% as the Greenback makes a U-turn erasing Thursday’s losses amid a risk-on mood. At the time of writing, the GBP/USD trades at 1.3604 yet poised to finish the week with a 0.56% loss.

AUD/USD rebounds on Friday and trades around 0.6995 at the time of writing, up 0.73% on the day.

Lee Hardman from MUFG highlights that the Pound has sold off sharply, with EUR/GBP breaking above its 200-day moving average as markets reprice a more dovish Bank of England path.

The US Dollar (USD) remains firm on Friday, with the Yen (JPY) showing the weakest performance of the major currencies for the second consecutive week.

The USD/CAD pair trades 0.17% lower to near 1.3690 during the European trading hours on Friday.

Societe Generale analysts note USD/CAD has slipped below its ascending trend line from December 2023 and rebounded from 1.3480, but the 200‑DMA near 1.3830 is seen as a key short‑term resistance.

TradingKey - While major global economies were still mired in a "rate-cut race," the Reserve Bank of Australia (RBA) dropped a bombshell in February 2026 by raising rates by 25 basis points. This cont

The Euro (EUR) has resumed its immediate bullish trend against the Japanese Yen (JPY) on Friday. The pair is trading at 185.25 at the time of writing, up from session lows at 184.40, with the JPY losing ground against its main peers ahead of this weekend’s snap elections.

Rabobank's Teeuwe Mevissen discusses the European Central Bank's recent decision to maintain interest rates unchanged at 2% for the fifth consecutive meeting.

MUFG’s Lee Hardman notes that the Japanese Yen remains weak against the Dollar ahead of Japan’s Lower House election, with short JPY positions yet to see the broad liquidation seen in other trades.

Silver (XAG/USD) is trimming some losses during Friday’s early European session, trading right above $74.00 at the time of writing, after hitting fresh seven-month lows near $64.00 earlier on the day. The pair, however, remains capped below a previous support area, in the vicinity of $75.00.

The Euro (EUR) ticks up against the US Dollar (USD) on Friday, trading near 1.1800 at the time of writing after hitting fresh two-week lows of 1.1765 earlier on the day.

The Euro (EUR) failed to hold above 0.8700 against the British Pound (GBP) on Friday and pulled back to session lows near 0.8685 in the early European session. The pair, however, remains on track to close its first positive week in two months, fuelled by the ECB-BoE policy divergence.

The Pound Sterling (GBP) regains ground against its major currency peers on Friday after a sharp fall the previous day, which was driven by the Bank of England’s (BoE) signal that there is a high chance of an interest-rate cut in the near term.

Here is what you need to know on Friday, February 6:

NZD/USD gains after two days of losses, trading around 0.5980 during the early European hours on Friday. Traders will watch the preliminary February US Michigan Consumer Sentiment Index, due for release later in the North American session.

The yen continues to weaken as political dynamics add downward pressure ahead of the 8 February election in Japan.

The USD/CAD pair trades with mild losses near 1.3685 during the early European session on Friday. The US Dollar (USD) softens against the Canadian Dollar (CAD) amid weaker-than-expected US economic data and a rise in crude oil prices.

GBP/USD suffered a double whammy, tumbling by 0.8% to 1.3550 overnight. The market significantly increased bets that the Bank of England would cut the bank rate by 25 bps at the next March meeting.

UOB's report, authored by Quek Ser Leang and Lee Sue Ann, suggests that the EUR/USD is facing downside risks, with potential support levels highlighted. The report indicates that a break below 1.1750 could occur, although a significant drop to 1.1725 is deemed unlikely at this time.

GBP/USD rebounds after two days of gains, trading around 1.3560 during the Asian hours on Friday. The technical analysis of the daily chart points to a potential bearish reversal as the pair is positioned near the lower boundary of an ascending channel pattern.

The USD/CHF pair trades 0.22% lower to near 0.7765 during the late Asian trading session on Friday. The Swiss Franc pair is under pressure as the rally in the US Dollar (USD) has paused, following an increase in dovish Federal Reserve (Fed) expectations.

The GBP/JPY cross attracts some buyers near the 211.60 area, or a four-day low touched during the Asian session on Friday, and climbs to the top end of the intraday range.

The Indian Rupee (INR) remains broadly unchanged against the US Dollar (USD) at around 90.35, despite the Reserve Bank of India’s (RBI) monetary policy announcement, in which it has left the Repo Rate unchanged at 5.25%, as expected.

EUR/JPY extends its losses for the second successive session, trading around 184.70 during the Asian hours on Friday. The technical analysis of the daily chart suggests that the 14-day Relative Strength Index (RSI) at 55.67 (neutral) stays north of 50, confirming a mild upside skew.

The EUR/USD pair attempts to regain ground near 1.1770 during the Asian trading session on Friday. The major currency pair attracts slight bids as the US Dollar ticks down amid an improvement in speculation that the Federal Reserve (Fed) could cut interest rates in the March policy meeting