USD/JPY plunges over 300 pips on Friday amid suspected Japan Ministry of Finance (MoF) "rate check", as excessive Yen (JPY) weakness fuels intervention fears. At the time of writing, the pair is trading around 156.18, down nearly 1.40% on the day, sliding to its lowest level since late December.

The British Pound (GBP) continues to outperform the US Dollar (USD) on Friday, with GBP/USD climbing to the 1.3600 handle as the Greenback remains under broad-based selling pressure. At the time of writing, the pair is up nearly 0.73% on the day, marking its highest level since September 18, 2025.

The Euro (EUR) trades flat against the US Dollar (USD) on Friday, as traders show a muted reaction to the latest US economic data. At the time of writing, EUR/USD is hovering near 1.1750 and remains on track for its first weekly gain in three weeks amid sustained weakness in the Greenback.

GBP/USD surges during the North American session over 0.31% on stronger than expected Retail Sales and PMI data, even though the Greenback trimmed losses on an upbeat Consumer Sentiment report. The pair trades at 1.3542 after bouncing off daily lows of 1.3482.

The Canadian Dollar (CAD) extends gains against the US Dollar (USD) on Friday, supported by a broadly softer Greenback and stronger-than-expected Canadian Retail Sales data. At the time of writing, USD/CAD trades around 1.3767, marking a fifth consecutive daily decline.

The Euro (EUR) weakens against the British Pound (GBP) on Friday, with Sterling outperforming its major peers after stronger-than-expected UK economic data. At the time of writing, EUR/GBP is trading around 0.8677 after climbing to a three-week high near 0.8745 earlier this week.

The US Dollar is trading near the 158.00 level against the Japanese Yen at the time of writing, after pulling back from session highs above 159.20.

Silver (XAG/USD) hit a fresh all-time high at $99.39 earlier on Friday, before pulling back to levels around $98.25 at the time of writing.

There is scope for Australian Dollar (AUD) to rise further, but any advance is likely part of a higher range of 0.6810/0.6860. In the longer run, AUD could continue to advance, but the scope for further gains is likely limited.

Despite the Bank of Japan (BoJ) revising up growth and inflation forecasts, political and fiscal risks are dominating yen dynamics and muting the usual USD/JPY response, ING's FX analyst Chris Turner notes.

USD/JPY has met interim resistance near 159.45 at the top of an ascending channel, with a short-term pullback potentially finding support around the 50-day moving average at 156.00-156.60, Société Générale's FX analysts note.

Growing consensus that Europe must chart its own strategic path is expected to underpin the Euro (EUR). EUR/USD may see further upside pressure, though resistance around 1.1770-1.1780 remains key, ING's FX analyst Chris Turner notes.

The Pound has retraced to the mid-range of the 123.00s, trading at 213.47 against the JPY at the time of writing, after whipsawing more than 200 pips as the Bank of Japan (BoJ) Governor Kazuho Ueda concluded his press conference, which has rumours of a Yen intervention.

Eurozone HCOB Services PMI below expectations (52.8) in January: Actual (51.9)

Eurozone HCOB Manufacturing PMI above expectations (49) in January: Actual (49.4)

Eurozone HCOB Composite PMI below forecasts (51.6) in January: Actual (51.5)

The Pound Sterling (GBP) attracts bids against its major currency peers as the United Kingdom (UK) Retail Sales figures have grown in December, after contracting in the last two months.

The AUD/JPY cross retreats nearly 130 pips from the highest level since July 2024, around the 109.00 mark touched earlier this Friday, though the pullback lacks follow-through.

EUR/USD posts moderate losses, trading near 1.1730 at the time of writing on Friday, but holding most of the previous day's gains and on track for its strongest weekly performance since June.

Germany HCOB Services PMI came in at 53.3, above expectations (53) in January

Germany HCOB Composite PMI registered at 52.5 above expectations (51.8) in January

Germany HCOB Manufacturing PMI above expectations (48) in January: Actual (48.7)

France HCOB Manufacturing PMI came in at 51, above expectations (50.3) in January

France HCOB Composite PMI below expectations (50.1) in January: Actual (48.6)

France HCOB Services PMI came in at 47.9, below expectations (50.5) in January

The NZD/USD pair extends its steady intraday descent from the 0.5930 area, or a four-month high touched earlier this Friday, and slides to a fresh daily low during the first half of the European session.

The Euro has pulled back from record highs near 187.00 to trade at 185.60 at the time of writing, with all Yen crosses whipsawing following Bank of Japan's (BoJ) Governor Ueda's press conference.

USD/CAD halts its four-day losing streak, trading around 1.3790 during the European hours on Friday. The pair holds ground as the US Dollar (USD) recovers from losses registered in the previous session amid easing geopolitical and trade tensions between the United States (US) and Europe.

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

The United Kingdom (UK) docket has the preliminary Purchasing Managers’ Index (PMI) data for January to be released by the S&P Global on Friday, later this session at 09:30 GMT.