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

Volkmar Baur at Commerzbank highlights a notable Japanese Yen recovery, with USD/JPY dropping below 157 for the first time since early September.

The British Pound (GBP) rises to near 210.20 against the Japanese Yen (JPY) after the release of the United Kingdom (UK) Retail Sales data for September.

USD/CAD remains steady after six days of losses, trading around 1.4010 during Asian hours on Friday. The pair is extending a corrective pullback below its short- and medium-term moving averages and keeping a bearish near-term bias.

The British Pound (GBP) is trading practically flat against the US Dollar (USD) on Friday, hardly affected by the weak retail consumption data released earlier in the day.

United Overseas Bank strategists (UOB) Quek Ser Leang and Lee Sue Ann report that EUR/USD outperformed modestly as the US Dollar (USD) softened, but price action remains choppy and largely directionless.

The Indian Rupee extends Thursday’s weakness against the US Dollar (USD) in Friday, wiping out almost entire gains made earlier this week. The USD/INR pair jumps to near 94.92 as surging oil prices due to Middle East tensions have weighed heavily on the Indian currency.

The EUR/USD pair trades in negative territory around 1.1210 during the early European trading hours on Friday. Worries about France's ability to tackle its huge debt burden have hurt French government bonds and exert some selling pressure on the Euro (EUR) against the US Dollar (USD).

The USD/JPY pair rebounds from an over one-month low, around the 156.00 neighborhood touched during the Asian session earlier this Friday following the release of Japan's consumer inflation figures.

The AUD/JPY cross trades in negative territory around 110.10 during the early European trading hours on Friday.

The AUD/USD pair struggles to capitalize on the previous day's bounce from sub-0.7000 levels and seesaws between tepid gains/minor losses during the Asian session on Friday.

USD/CHF holds ground after three days of losses, trading around 0.8210 during Asian hours on Friday. The currency pair has inched higher as the US Dollar (USD) recovers its daily losses despite mounting doubts regarding the sustainability of the AI trade.

EUR/JPY gains ground after two days of losses, trading around 176.10 during Asian hours on Friday. Technical analysis of the daily chart shows the currency cross remains within a descending channel pattern, indicating a persistent bearish bias.

The NZD/USD pair gathers strength to around 0.5690 during the Asian trading hours on Friday. Growing expectations of a Reserve Bank of New Zealand (RBNZ) rate hike provide some support to the New Zealand Dollar (NZD) against the US Dollar (USD).

USD/CAD extends its losing streak for the seventh successive day, trading around 1.4000 during Asian hours on Friday. The pair has depreciated as the US Dollar (USD) struggles under pressure from mounting doubts regarding the sustainability of the AI trade.

The EUR/USD pair builds on the overnight bounce from sub-1.1200 levels and attracts some follow-through buying during the Asian session on Friday. Spot prices, however, remain confined within a one-week-old range, currently trading around the 1.1225 area amid mixed fundamental cues.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Friday at 6.7180 compared to the previous day's fix of 6.7195 and 6.6758 Reuters estimate.

The USD/JPY pair remains under selling pressure to near 156.25 during the early Asian session on Friday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) following hot Japan’s inflation report.

The Australian Dollar retreats 0.17% against the US Dollar on Thursday as sentiment soured on US tech stocks falling on worries about AI valuations, while Oil surged on an escalation of the US-Iran conflict. The AUD/USD trades at 0.7017.

The Mexican Peso depreciated for the second straight day, down 0.16%, as the US Dollar held firm amid growing tensions in the Middle East and investor fears that mega tech companies are issuing more debt to finance the AI buildout. The USD/MXN trades at 18.72, up 0.20%.

The USD/CHF edges lower, losing 0.46% and dropping towards 0.8200 as safe-haven currencies like the Swiss Franc and the Japanese Yen are the only currencies appreciating versus the Greenback during the day. The pair trades at 0.8205.

The US Dollar (USD) was unable to maintain its recovery, coming under some modest selling pressure in the latter part of Thursday’s NA session.

NZD/USD pauses a five-day winning streak on Thursday following softer-than-expected domestic inflation data. However, the pair lacks follow-through selling as the US Dollar (USD) remains on the back foot amid declining US Treasury yields.

The Pound Sterling retreats against the US Dollar down 0.16% after hitting a high of 1.3419 as tensions in the Middle East rise and US jobs data shows the labor market remains strong. This increases the chances that the Federal Reserve may raise rates, but not in October.

USD/JPY loses nearly 0.65% on Thursday, on track for its biggest daily decline in a month, as growing concerns over AI-related investments weigh on global equities and dampen risk sentiment, driving renewed safe-haven demand for the Japanese Yen (JPY), which is outperforming across the board.

AUD/USD trades around 0.7010 on Thursday at the time of writing, down 0.21% on the day, as the Australian Dollar (AUD) retreats from a fresh monthly high.

Societe Generale’s Kenneth Broux notes EUR/GBP has extended its decline after breaking the July low and is now testing support at the lower end of a multi‑month descending channel near 0.8370/0.8355.

EUR/USD loses 0.33% on Thursday, reversing earlier gains as the US Dollar (USD) stages a rebound after slipping to a three-week low during Asian trading hours. Meanwhile, political turmoil in France and uncertainty surrounding the country's fiscal outlook continue to weigh on the Euro (EUR).

The Euro (EUR) is walking a tightrope between French fiscal risk and a firm Federal Reserve (Fed).

Societe Generale analysts highlight that SAGBs outperformed and the ZAR strengthened after South Africa’s mini‑budget, although some gains were surrendered the following morning. The deficit target for 2026/27 was trimmed to 3.9% of GDP, issuance was reduced, and a bond buyback programme announced, with the government signalling a proposed fiscal anchor and raising the prospect of a medium‑term return to IG status.