Canadian Dollar (CAD) gains are lagging most of its peers on the day and over the week but a 1%-plus rise since Monday so far nevertheless puts the CAD on course to extend its rebound.

Gold is back in demand amid rising geopolitical uncertainty and a weakening US dollar, with prices climbing above $3,300 per ounce. However, upside potential may be limited as high prices weigh on physical demand in Asia, Commerzbank's commodity analyst Barbara Lambrecht notes.

With the US long weekend looming and no major data releases to deal with today, it’s likely to be a fairly quiet session, Scotiabank's Chief FX Strategist Shaun Osborne notes.

India FX Reserves, USD: $685.73B (May 12) vs previous $690.62B

Further US Dollar (USD) declines are not ruled out, but deeply oversold conditions and tentative slowing of downward momentum could first lead to consolidation, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

The Euro (EUR) remains well-supported on dips, with spot trading close to a cent above yesterday’s session low, Scotiabank's Chief FX Strategist Shaun Osborne notes.

The NZD/USD pair surges almost 1% to near 0.5960 during European trading hours on Friday. The Kiwi pair soars as the New Zealand Dollar (NZD) outperforms its peers on stronger-than-projected New Zealand (NZ) Q1 Retail Sales data.

European Central Bank (ECB) chief economist Philip Lane said on Friday that they are confident that the service inflation in the Eurozone will continue to decline, per Reuters.

A narrower 0.5865/0.5985 range is likely enough to contain the price movements for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

In his latest blog post, US economist Paul Krugman (winner of the 2008 Nobel Prize in Economics) shows one of my favorite graphs: the net international investment position (IIP) of the US, in other words, the net debt (when negative) of the US economy vis-à-vis the rest of the world.

The chances of a Bank of Japan hike in July are very much underpriced, ING's FX analyst Chris Turner notes.

Australian Dollar (AUD) is under mild downward pressure; it could edge lower to 0.6395. In the longer run, outlook is mixed; AUD is likely to trade in a range between 0.6370 and 0.6480, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The AUD/USD pair is up 0.8% around 0.6460 during European trading hours on Friday. The Aussie pair strengthens as antipodeans perform strongly, and escalating concerns over the United States (US) fiscal health continue to batter the US Dollar (USD).

Earlier this week, we speculated over the low probability, high impact event of a change in FX language in this week's closing statement from the G7 meeting of Finance Ministers and Central Bank governors in Canada, ING's FX analyst Chris Turner notes.

US natural gas prices declined sharply as storage data surprised to the upside, reinforcing concerns about near-term oversupply and weighing on NYMEX Henry Hub futures, ING's commodity experts Ewa Manthey and Warren Patterson note.

Pi Network (PI) declines by nearly 4% on Friday, trading at $0.79 at press time. The technical outlook suggests a downward move ahead as the short-term recovery concludes with a trendline breakdown.

Momentum indicators still point to Pound Sterling (GBP) upside; the next technical target is at 1.3500, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The oil market is under renewed pressure as noise builds around what OPEC+ will do with their July output levels, ING's commodity experts Ewa Manthey and Warren Patterson note.

EUR/USD resumes its upside journey on Friday after a corrective move the previous day. The major currency pair jumps to near 1.1350 during European trading hours as the US Dollar (USD) slumps after a short-lived recovery on Thursday.

Markets had already doubted whether the Bank of Japan (BoJ) would raise its key interest rate again in July. Inflation figures for April published this morning are likely to increase the dilemma for the BoJ. After all, inflation remains above the BoJ's target, mainly due to energy and food prices.

Bitcoin (BTC) price stabilizes near $111,000 on Friday after reaching a new all-time high of $111,900 this week.

Price action suggests further Euro (EUR) strength, with 1.1400 now in focus, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The hard data from the US does not yet show any real signs of a drastic economic slowdown as a result of the new US administration's erratic trade and economic policy, although growth in the first quarter surprised on the downside with a contraction, fueling recession fears.

The release yesterday of ECB minutes and ECB commentary seems to squarely point to a 25bp ECB rate cut in June, ING's FX analyst Chris Turner notes.

Silver prices (XAG/USD) rose on Friday, according to FXStreet data.

The AUD/JPY cross attracts some buying on Friday and for now, seems to have snapped a three-day losing streak to sub-92.00 levels, or a three-week low touched the previous day.

Here is what you need to know on Friday, May 23: