USD/JPY ended the week pressing the 162.00 handle, a whisker beneath its multi-decade high, and the more revealing detail is what it took to drag the Yen up there: a Bank of Japan (BoJ) rate hike that was billed as the turning point.

The Canadian Dollar trims part of its intraday gains as uncertainty surrounding a final US-Iran peace agreement and expectations of a hawkish Federal Reserve (Fed) help the US Dollar recover some of its losses after coming under pressure from Thursday's broadly in-line US Personal Consumption Expend

EUR/USD trades on the front foot on Friday but remains on track for a second straight weekly loss as the fragile situation in the Middle East and hawkish Federal Reserve (Fed) outlook keep the US Dollar's (USD) downside limited.

The Pound Sterling gains 0.20% against the Greenback as the latter recoils after hitting year-to-date (YTD) highs, with money markets pricing in a less hawkish Federal Reserve, despite policymakers stating they will focus on inflation.

AUD/USD is recovering near 0.6900 on Friday as the US Dollar (USD) weakens, with investors taking profits ahead of the end of the semester after a two-week rally in the Greenback. The move helped the Australian Dollar (AUD) recover some intraday ground, although the full picture remains negative.

GBP/JPY trades in a narrow range on Friday as traders weigh the latest UK political developments against lingering intervention risks from Japanese authorities, with USD/JPY holding above the 160.00 level.

USD/JPY edges lower on Friday and trades around 161.60 at the time of writing after once again failing to sustain a move above the 162.00 mark. The pair is facing profit-taking as investors remain cautious over the risk of intervention by Japanese authorities to support the domestic currency.

Lee Hardman at MUFG highlights that the Japanese Yen remains near year-to-date lows versus the US Dollar, with intervention risks limiting further weakness.

NZD/USD trades around 0.5650 on Friday, up 0.05% at the time of writing, as the New Zealand Dollar (NZD) remains under pressure despite a weaker US Dollar (USD) following the latest US inflation data.

USD/CHF edges lower on Friday, retracing all the gains recorded this week as the US Dollar (USD) rally loses momentum following the latest US Personal Consumption Expenditures (PCE) data, which broadly came in line with expectations and showed that underlying inflationary pressures remain relatively

The British Pound (GBP) is trading higher against the US Dollar (USD) for the second consecutive day on Friday, as the US Dollar’s rally faltered, with Oil prices returning to pre-war levels.

Societe Generale strategists note USD/MXN has held key lows near 17.10 and is now trying to break out from a small base formation. Initial resistance is at the 200-day moving average around 17.80, with a recent low at 17.30 acting as support.

USD/CAD trades lower around 1.4180 on Friday, down 0.13% at the time of writing, as the US Dollar (USD) weakens following the latest US inflation data.

The Indian Rupee (INR) is expected to open higher against the US Dollar (USD) on Monday. On Friday, Indian markets are closed for Muharram celebrations.

ING’s Francesco Pesole writes that markets are increasingly viewing 162.0 in USD/JPY as a new intervention threshold, helping explain the sharp intraday drop after the pair neared 162.

The Euro (EUR) pares previous weekly losses against the US Dollar (USD) on Friday, favoured by a sharp decline in oil prices and a somewhat softer US Dollar.

Commerzbank’s Tatha Ghose warns that CBRT governor Karahan is again signalling premature monetary easing, considering a return to one-week repo auctions that would lower effective funding costs toward the 37% policy rate.

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann keep a constructive view on USD/JPY, noting the pair has held above strong support at 161.10 while trading quietly around 161.78.

Francesco Pesole at ING highlights that EUR/USD is seeking stabilisation around 1.1350–1.1400, with Eurozone-specific inputs secondary in the short term.

The USD/JPY pair continues with its struggle to reclaim the 162.00 mark on Friday and retreats slightly from the vicinity of a 40-year peak.

Rabobank strategists Christian Lawrence and Molly Schwartz note that Banxico’s June 25 decision highlighted an unchanged policy rate at 6.50%, in line with consensus. They expect Banxico to stay on hold through year-end, mirroring their stance on the Bank of Canada (BoC) and Federal Reserve (Fed).

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann note AUD/USD remains under pressure after an impulsive decline, though oversold conditions have prompted near-term consolidation between 0.6880 and 0.6920.

The Japanese Yen (JPY) is finding a firmer fundamental floor as inflation in the Greater Tokyo Area edges closer to the Bank of Japan’s (BoJ) 2% target. While the Yen has shown recent stability against the US Dollar, it remains locked in a high-stakes tug-of-war.

The GBP/USD pair sticks to its positive bias for the second straight day, though it lacks bullish conviction and trades just above the 1.3200 mark during the early European session on Friday.

The Australian Dollar (AUD) underperforms its major currency peers, trading 0.25% lower to near 0.6890 against the US Dollar (USD) during the European trading session on Friday. The antipodean weakens as market participants expect the next move by the Reserve Bank of Australia (RBA) on the downside.

Silver (XAG/USD) has bounced up from seven-month lows below $56.00 on Friday, to reach session highs at $57.80 at the moment of writing.

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann note GBP/USD failed to test major support at 1.3110, instead rebounding from 1.3152 to 1.3218 before closing at 1.3190.

The GBP/JPY cross struggles to capitalize on the previous day's modest recovery gains and seesaws between tepid gains/minor losses through the early European session on Friday. Spot prices currently trade just below mid-213.00s, nearly unchanged for the day amid mixed fundamental cues.

The USD/CHF pair trades 0.2% lower at around 0.8085 during the European trading session on Friday, extending its correction from the 10-month high of 0.8140 posted on Wednesday.

The Euro (EUR) is trading practically flat, around 0.8615 against the British Pound on Friday, showing some signs of bottoming after bouncing from 0.8600 lows on Wednesday.