US Treasury yields advanced on Friday during the North American session after reversing their course following the release of US Retail Sales data, which disappointed investors. Meanwhile, the lack of news from the Middle East kept Oill prices higher, amid fears of a resumption of hostilities.

Societe Generale analysts highlight CNY’s firm trend, with the currency advancing to 6.7424, its strongest level since February 2023, on Dollar weakness and lower US yields.

Commerzbank notes that the Kospi has rebounded 29.5% from its 30 July low, supported by strong tech earnings and improved sentiment toward semiconductor and memory chipmakers.

Japan CFTC JPY NC Net Positions climbed from previous ¥-45.5K to ¥-42.1K

United States CFTC Gold NC Net Positions up to $217.9K from previous $197.6K

United Kingdom CFTC GBP NC Net Positions increased to £-56.2K from previous £-57.8K

MUFG’s Asia FX Weekly highlights that China’s July activity indicators, following weak Q2 GDP, will be central for the Chinese Yuan and regional FX.

OCBC’s Sim Moh Siong and Christopher Wong note USD/SGD is consolidating around 1.28 as softer United States (US) Producer Price Index (PPI) trims Federal Reserve (Fed) hike expectations but fails to trigger fresh US Dollar (USD) selling.

Societe Generale analysts note USD/KRW has corrected after losing its 200-day moving average near 1478 and is now testing an ascending trend line from 2023 around 1407.

TradingKey - 오스탄 굴스비 시카고 연방준비은행 총재는 최근 인플레이션 둔화세에 고무되었다면서도, 인플레이션이 연방준비제도(Fed)의 2% 목표치를 향해 돌아가고 있음을 확인하려면 향후 몇 달간 이와 유사한 개선세가 지속되어야 한다고 밝혔다.굴스비 총재는 소비자물가지수(CPI) 데이터가 긍정적인 신호를 주었다며, 관세와 유가 상승 등 지난 1년간

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann note that USD/CNH remains confined to a tight intraday range, with momentum indicators still flat and the pair expected to trade between 6.7400 and 6.7500.

MUFG analysts focus on several ASEAN indicators for regional currencies. They flag Singapore’s July non-oil domestic exports after June’s strong 20.7% year-on-year rise, and expect Malaysia’s CPI to stay contained at 1.9% year-on-year.

TD Securities’ Robert Both expects Canadian headline CPI to rise to 2.9% year-on-year in July, driven by higher gasoline and food prices, while ex. food/energy components stay muted.

ING’s Lynn Song expects Bank Indonesia to keep its benchmark rate unchanged at 5.75% this week, prioritizing Rupiah stability while avoiding an immediate hike. The report highlights BI’s growing reliance on non-rate tools such as SRBI yields and FX intervention.

Nordea strategists see the Norwegian Krone (NOK) broadly stable over the next six months after July’s EUR/NOK decline, driven by higher Oil prices and Norges Bank’s increased NOK purchases.

ING’s Lynn Song expects China’s July data to show continued sluggish momentum, with only a modest rebound and weak Retail Sales at 1.7% year-on-year. Fixed Asset Investment is forecast to contract further, while Industrial Production remains relatively firm.

Nordea analysts Ole Håkon Eek-Nielsen and Jan von Gerich argue that the Federal Reserve is likely to deliver three more rate hikes over coming quarters to bring inflation back to target.

TD Securities’ Julie Ioffe expects UK headline CPI to rise to 2.9% year-on-year in July, largely due to the Ofgem energy price cap adjustment. Services inflation is forecast to ease to 3.4%, while core goods rise to 1.0%, keeping core CPI at 2.6%.

ING highlights that market consensus sees Japan’s preliminary Q2 Gross Domestic Product (GDP) holding at 0.5% quarter-on-quarter, with Private Consumption remaining the main growth driver.

Commerzbank’s Norman Liebke highlights that Oil and European natural gas are reacting differently to Middle East supply risks, with Brent supported by rerouted flows while gas remains constrained by lost LNG from Qatar and US cargoes diverted to Asia.

Royal Bank of Canada (RBC) economist Claire Fan highlights that Canadian growth rebounded strongly in Q2, supported by resilient domestic demand and improving net trade. She notes that U.S.

ING’s Chris Turner notes that despite sharp moves in Japanese money markets, the Japanese Yen is not finding lasting support. Markets now price a high probability of a Bank of Japan hike in September, narrowing US–Japan swap differentials, yet USD/JPY remains elevated as carry trades persist.

Rabobank strategist Elwin de Groot observes that stronger-than-expected UK GDP has provided fresh ammunition to Bank of England (BoE) hawks, even as the Bank remains reluctant to tighten further. Growth was broad-based, with investment and GDP per capita both rising.

Nordea’s Ole Håkon Eek-Nielsen and Jan von Gerich expect the European Central Bank (ECB) to deliver three additional 25bp rate hikes, taking the deposit rate to 3%.

Societe Generale notes Norway’s central bank kept its policy rate unchanged at 4.25% and softened its hawkish tone. The bank still anticipates one further rate increase, but removed explicit guidance for a near-term hike.

TradingKey - 미국의 최신 7월 소매판매 지표가 시장 예상치를 크게 하회했다. 지난 6월 전월 대비 0.2% 증가했던 미국의 7월 소매판매는 0.6% 감소했으며, 당초 시장에서는 7월에도 완만한 성장세가 이어질 것으로 예상했었다. 이번 지표는 2분기 비교적 견조했던 소비자 지출 이후 3분기 초에 접어들면서 미국 소비자들이 눈에 띄게 신중한 태도로

Retail Sales in the United States decreased to $763.6 billion in July, the US Census Bureau reported on Friday. This print reversed the 0.2% expansion recorded in the previous month and came in below market expectations (+0.1%). On a yearly basis, Retail Sales were up 5.0% in this period.

TD Securities’ Oscar Munoz argues that Chair Kevin Warsh’s communication strategy has undermined market confidence in the Federal Reserve’s inflation-fighting resolve.

Rabobank's Senior FX Strategist Jane Foley highlights Switzerland’s stronger-than-expected Q2 Gross Domestic Product (GDP) and resilient economy, yet notes EUR/CHF remains in a gentle uptrend since late May.

Commerzbank’s Antje Praefcke explains that Norges Bank kept its policy rate at 4.25% and still signals that further tightening may be necessary as inflation remains above target. However, upcoming data, especially August inflation, could prompt the bank to drop its year-end hike signal.