Brown Brothers Harriman (BBH) strategist Elias Haddad reports EUR/USD trading defensively below 1.1200 after weaker-than-expected Eurozone PMI, which still signals robust growth.

USD/CAD slips below 1.4000 to its lowest level in a month on Friday, extending its losing streak to seven consecutive days as traders expect the Federal Reserve (Fed) and the Bank of Canada (BoC) to take different paths at next week’s meetings.

OCBC strategists Christopher Wong and Sim Moh Siong say Indian Rupee's (INR) recent recovery has stalled as renewed gains in Oil prices highlight India’s external vulnerabilities.

Chris Turner at ING highlights that the Mexican Peso has been the weakest emerging market currency since early September, hurt by dovish Banxico rhetoric and narrowing policy spreads versus the Federal Reserve. Without a hawkish surprise at the 5 November meeting, he expects MXN to remain vulnerable, with IMF-flagged US tech exposure adding pressure and USD/MXN seen heading toward the 19.00–19.10 area in coming weeks.

Silver (XAG/USD) slides to fresh yearly lows on Friday after plunging 5.8% on Thursday as concerns over AI-related investments weighed on equities, but failed to spark safe-haven demand for Silver as investors favour government bonds.

Commerzbank economists, led by Dr. Jörg Krämer and colleagues, expect the Fed and ECB to keep rates unchanged in October but deliver 25 bps hikes in December, with policy then staying slightly restrictive as inflation trends lower into 2027.

The US Dollar (USD) has experienced a sharp setback against the Japanese Yen (JPY), with USD/JPY plunging from the 158.20 area to intraday lows around 156.08 as falling US Treasury yields and a spike in geopolitical risk aversion triggered aggressive safe-haven demand for the Yen.

Elias Haddad at Brown Brothers Harriman notes GBP/USD is weaker on broad Dollar strength, even as UK PMI beats and supports expectations for a 25 bps BOE hike to 4.00% in November. He argues the swaps market is overpricing future tightening, citing below-capacity growth, weak real wages, a near-neutral policy rate and likely fiscal restraint as headwinds for the Pound.

The US Dollar (USD) is trimming losses against the Swiss Franc (CHF) on Friday, as the risk-off mood, stemming from surging Oil prices, has offset the negative impact of falling US Treasury yields.

United Overseas Bank strategists (UOB) Quek Ser Leang and Lee Sue Ann observe that AUD/USD has entered a short-term consolidation after recent gains, with intraday trade expected between 0.6995 and 0.7030. Over 1–3 weeks they remain constructive but note slowing upward momentum and risk that a break below 0.6985 would put the 0.7070 target out of reach, while longer-term EMAs still warn of downside toward prior lows.

The Australian Dollar (AUD) trades marginally higher at around 0.7018 against the US Dollar (USD) during the European trade on Friday.

The British Pound (GBP) is down against its major currency peers on Friday, trading 0.1% lower at around 1.3380 against the US Dollar (USD) during the European trade.

Brown Brothers Harriman (BBH) strategist Elias Haddad describes the Japanese Yen (JPY) as leading gains and acting as an ultimate refuge currency, supported by hotter Consumer Price Index (CPI) and steady Purchasing Managers' Index (PMI) data that back additional Bank of Japan (BoJ) hikes. However, with inflation still below BoJ projections and limited near-term hike odds, he expects USD/JPY to hold in a defined range unless risk-off intensifies.

United Overseas Bank strategists (UOB) Quek Ser Leang and Lee Sue Ann note a steep USD/JPY selloff as safe-haven demand for Japanese Yen (JPY) surged on geopolitical tensions and falling US Treasury yields.

The EUR/USD pair attracts sellers for the second straight day in reaction to mostly disappointing Eurozone PMIs, trading near the lower end of the weekly range, around the 1.1200 mark during the first half of the European session on Friday.

The New Zealand Dollar (NZD) posts minor gains against the US Dollar (USD) on Friday, but remains trading within Thursday’s range, amid a moderate risk-off mood as Oil prices rise to fresh five-month highs.

Eurozone HCOB Manufacturing PMI came in at 52.4 below forecasts (52.8) in October

Eurozone HCOB Composite PMI came in at 51.9 below forecasts (52.7) in October

Eurozone HCOB Services PMI below forecasts (52.8) in October: Actual (51.7)

The USD/JPY pair stages a goodish intraday bounce from the 156.00 neighborhood, or an over one-month low touched earlier this Friday, and sticks to modest gains through the early European session.

AUD/USD holds ground after posting modest losses in the previous day, trading around 0.7020 during early European hours on Friday. The pair remains steady as the Australian Dollar (AUD) holds ground following the release of preliminary S&P Global Purchasing Managers' Index (PMI) data.

United Overseas Bank strategists (UOB) Quek Ser Leang and Lee Sue Ann highlight that GBP/USD saw volatile swings but closed little changed, with no clear momentum shift.

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).