Commerzbank’s Dr. Vincent Stamer expects the Euro area composite PMI to edge up to 51.5 in February, driven by improving manufacturing sentiment as looser policy, higher German spending and limited tariff fallout support activity.

The AUD/USD pair oscillates in a narrow trading band below the 0.7100 mark through the Asian session as traders move to the sidelines ahead of Friday's release of the latest US consumer inflation figures.

The USD/CHF pair trades in positive territory near 0.7700 during the early European session on Friday. Growing expectations that the US Federal Reserve (Fed) will not cut interest rates in the near term provide some support to the Greenback against the Swiss Franc (CHF).

The US Bureau of Labor Statistics (BLS) will publish January’s Consumer Price Index (CPI) data on Friday, delayed by the brief and partial United States (US) government shutdown.

The AUD/JPY pair struggles to capitalize on a modest Asian session uptick and remains close to a nearly two-week low, touched the previous day. Spot prices currently trade just below mid-108.00s, up less than 0.20% for the day, and seem poised to register weekly losses.

The GBP/JPY cross holds positive ground near 208.25, snapping the four-day losing streak during the early European session on Friday.

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index (RSI) momentum indicator at 56 stays above the midline, confirming steady momentum.

USD/INR steadies on Friday after recording modest losses in the previous session. The pair is likely to trade within the 90.50–91.00 range, as Asian currencies show signs of stabilization while investors remain cautious amid prevailing risk-off sentiment.

The NZD/USD pair finds some support near the 0.6025 region during the Asian session on Friday and, for now, seems to have stalled the previous day's retracement slide from a two-week high.

The USD/CAD pair posts modest gains around 1.3615 during the Asian trading hours on Friday. The US Dollar (USD) edges higher against the Canadian Dollar (CAD) amid expectations that the Federal Reserve (Fed) will not cut interest rates in the near term.

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Silver price (XAG/USD) recovers some lost ground to near $76.60 during the Asian trading hours on Friday. The white metal suddenly fell late Thursday, pushing silver down more than 11%.

On Friday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.9398 compared to the previous day's fix of 6.9457.

The Australian Dollar (AUD) advances against the US Dollar (USD) on Friday after posting losses of more than 0.5% in the previous session. Still, AUD/USD may find support from cautious sentiment surrounding the Reserve Bank of Australia (RBA) policy outlook.

The USD/JPY pair gains some positive traction during the Asian session on Friday and moves away from an over two-week low, around the 152.30-152.25 region, touched the previous day. Spot prices, however, lack bullish conviction and currently trade and remain below the 153.00 mark amid mixed cues.

The EUR/USD pair trades on a flat note near 1.1870 during the early Asian session on Friday. The major pair steadies amid mixed signals from the latest release of US economic indicators.

The Pound Sterling tumbles on Thursday, down 0.36% in the day as risk aversion boosted the safe-haven appeal of the Japanese Yen. Renewed AI disruption fears sent Wall Street plunging, while haven assets like Gold, Silver and the US Dollar failed to gain traction.

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair.

The Japanese Yen strengthened past 153 per US Dollar on Thursday, rising for the fourth straight session after Prime Minister Sanae Takaichi's decisive general election victory on February 8 gave her a clear mandate to pursue expansionary fiscal policy.

The New Zealand Dollar firmed to around 0.6057, its highest level in two weeks, as markets assessed the Reserve Bank of New Zealand's (RBNZ) policy outlook ahead of its February 18 Monetary Policy Statement.

The Australian Dollar rallied to a fresh three-and-a-half-year high above 0.7140 this week after the Reserve Bank of Australia (RBA) reinforced its hawkish stance.

The Swiss Franc continued to appreciate versus the Greenback on Thursday, following a slightly soft US jobs report overshadowed by Wednesday’s Nonfarm Payrolls print. Despite this, the Greenback, has failed to rally and USD/CHF trades at 0.7700 down 0.22%.

The Japanese Yen (JPY) trades on the front foot against the US Dollar (USD) on Thursday, with USD/JPY extending its decline for a fourth straight day, driven by Japan’s election outcome and ongoing intervention concerns.

The Euro (EUR) regains some lost ground against the US Dollar (USD) on Thursday, with EUR/USD snapping a two-day losing streak as the Greenback struggles to attract a meaningful recovery. At the time of writing, EUR/USD is trading around 1.1883, up about 0.10%.

The Pound Sterling rallies during the North American session versus the US Dollar, after the jobs data in the US, contradicts a stellar Nonfarm Payrolls report released a day ago. Meanwhile, the UK economy grew weaker than expected, yet the British Pound continues to trade with gains.

BNY’s EMEA Macro Strategist Geoff Yu notes that the Japanese government remains highly vigilant on foreign exchange despite recent Japanese Yen gains, with USD/JPY moving toward 153 after stronger U.S. payrolls pushed back Federal Reserve rate-cut expectations.

Scotiabank analysts Shaun Osborne and Eric Theoret note the Euro is stabilizing after a minor NFP-driven setback, with improving yield spreads and recovering correlations pointing back to fundamentals.

AUD/USD trades around 0.7140 on Thursday at the time of writing, up 0.21% on the day, after briefly reaching a three-year high at 0.7147.

The Canadian Dollar (CAD) trades little changed against the US Dollar (USD) on Thursday, as growing uncertainty around North American trade ties keeps investors cautious. At the time of writing, USD/CAD is hovering near 1.3571, with a broadly softer Greenback limiting upside in the pair.

BNY’s EMEA Macro Strategist Geoff Yu highlights that RBA Governor Michele Bullock signaled further rate hikes are possible if Australian inflation remains entrenched, with expectations and productivity trends worrying policymakers.