GBP/USD advances around 1.3630 on Friday at the time of writing, up 0.54% on the day, benefiting from broad US Dollar weakness following the release of the US employment report.

American consumer confidence is expected to have deflated in early May, as households have been growing more pessimistic about current conditions and the broader economic outlook, according to preliminary data from the University of Michigan.

The Euro (EUR) strengthens against the US Dollar (USD) on Friday as the Greenback remains under pressure following mixed US labor market data. At the time of writing, EUR/USD is trading around 1.1777, up roughly 0.44% on the day.

United States UoM 1-year Consumer Inflation Expectations down to 4.5% in May from previous 4.7%

United States UoM 5-year Consumer Inflation Expectation declined to 3.4% in May from previous 3.5%

United States Michigan Consumer Expectations Index climbed from previous 48.1 to 48.5 in May

United States Michigan Consumer Sentiment Index below forecasts (49.5) in May: Actual (48.2)

United States Wholesale Inventories came in at 1.3%, below expectations (1.4%) in March

Commerzbank’s Bernd Weidensteiner notes that United States (US) employment rose by 115,000 in April, beating expectations and signaling a recovery after prior weakness. The six‑month average of job gains is picking up again, supported by strong corporate profits and favorable financing conditions.

Inflows returned to global Gold ETFs in April, with funds from the United Kingdom (UK) leading the surge, as the price of the precious metal stabilized after March’s sharp decline.   

ING’s Frantisek Taborsky reports that the Czech National Bank and National Bank of Poland kept rates unchanged but signalled different risk balances. He sees limited scope for further tightening in Czech Republic and a prolonged hold in Poland with conditional tightening risks.

TD Securities strategists Robert Both and Emma Lawrence note that weaker Canadian employment in April, including job losses and a higher unemployment rate, is unlikely to bring the Bank of Canada (BoC) closer to rate cuts.

Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is modestly higher versus the Dollar, supported by risk sentiment around the US/Iran conflict despite softer German trade data and slightly reduced ECB tightening expectations.

Geopolitical tensions intensified on Friday after reports from US and Iranian media regarding military operations around the Strait of Hormuz.

Commerzbank’s Barbara Lambrecht reports that China’s central bank (PBoC) used a temporary Gold price dip in April to extend its buying streak to 18 months, with the largest addition since December 2024.

The United States (US) created 115K new jobs in April, much better than the 62K anticipated by markets. The unemployment rate in the same month was confirmed at 4.3%, as expected. The Nonfarm Payrolls (NFP) report came in better than anticipated, yet the US Dollar (USD) eased with the news.

Russia Central Bank Reserves $ fell from previous $771.7B to $757.5B

USD/JPY edges lower on Friday and trades around 156.65 at the time of writing, down 0.17% on the day, despite the release of a stronger-than-expected US employment report.

GBP/JPY edges higher on Friday as the Japanese Yen (JPY) continues to face selling pressure despite suspected intervention by Japanese authorities earlier this week.

TD Securities strategists expect April United States (US) Consumer Price Index (CPI) to show firmer inflation, with core CPI seen at 0.38% m/m and 2.8% y/y, and headline at 0.56% m/m and 3.7% y/y.

Ripple (XRP) appears to have found support at $1.38 on Friday, after a significant correction following its weekly high at $1.47, tagged on Wednesday. The remittance token shows subtle rebound signals, aiming for a short-term breakout above the $1.40 supply threshold.

United States Average Weekly Hours came in at 34.3, above expectations (34.2) in April

United States Average Hourly Earnings (YoY) registered at 3.6%, below expectations (3.8%) in April

United States U6 Underemployment Rate remains unchanged at -8% in April

United States Nonfarm Payrolls came in at 115K, above expectations (62K) in April

United States Labor Force Participation Rate dipped from previous 61.9% to 61.8% in April

United States Average Hourly Earnings (MoM) came in at 0.2%, below expectations (0.3%) in April