DBS Group Research economist Radhika Rao notes that the Reserve Bank of India (RBI) is exploring measures to attract more US Dollar (USD) flows to support the Rupee and address the balance of payments gap.

Societe Generale analysts note that the central bank of Sweden, Riksbank left rates on hold this morning at 1.75% and EUR/SEK has been rebounding from an interim low and is now challenging its 200-day moving average, which has capped the pair since last year.

United States Challenger Job Cuts up to 83.687K in April from previous 60.62K

OCBC strategists Sim Moh Siong and Christopher Wong characterize recent moves in Asian FX as a relief rally driven by lower Oil and hopes of a US–Iran deal. They stress that any agreement and normalization of flows through the Strait of Hormuz remain uncertain.

Spain 10-y Obligaciones Auction down to 3.392% from previous 3.435%

Spain 3-y Bond Auction fell from previous 2.734% to 2.675%

Singapore Foreign Reserves (MoM) climbed from previous 419.2B to 427.3B in April

Here is what you need to know on Thursday, May 7:

France 10-y Bond Auction fell from previous 3.73% to 3.61%

European Central Bank (ECB) policymaker and Bank of France Governor Francois Villeroy de Galhau said in the European trading session on Thursday that the central bank should focus on the data and not the timing of any monetary policy adjustment

United Kingdom S&P Global Construction PMI registered at 39.7, below expectations (45.7) in April

Societe Generale economists Sam Cartwright, Michel Martinez and Jorge Garayo analyse Euro Area inflation following the latest energy shock. They note headline inflation has already risen to 3% and expect indirect and second‑round effects to push it toward 3.5% in early 2027.

Commerzbank’s Tatha Ghose expects the Czech National Bank (CNB) to keep rates at 3.50% but sees upside inflation risks from higher energy prices and a growing chance of at least one 25 bp hike later in 2026.

China Foreign Exchange Reserves (MoM): $3.411T (April) vs $3.342T

BNY’s Geoff Yu highlights growing fiscal stress in Central and Eastern Europe (CEE) as a key driver for regional FX and carry trades. Romania faces acute fiscal and external imbalances, while Poland and Hungary show better current account and Foreign Direct Investment (FDI) dynamics.

According to a post from Al-Hadath, a sister channel to Al Arabiya, on X, sources have stated that intense communications are ongoing to gradually reopen the Strait of Hormuz, a vital passage to almost 20% of the global energy supply.

EUR/JPY remains flat after experiencing volatility, hovering around 183.70 during the early European hours on Thursday. The currency cross remains subdued as the Euro (EUR) failed to gain support from the strong German data.

Sweden Riksbank Interest Rate Decision meets forecasts (1.75%)

European Central Bank (ECB) Governing Council member and President of the Deutsche Bundesbank, Joachim Nagel, said during the European trading session on Friday that the central bank could raise interest rates if the outlook for the Eurozone economy doesn’t improve markedly.

Danske Research Team expects the central bank of Norway, Norges Bank to raise its policy rate by 25bp to 4.25% at the interim meeting, arguing there is little reason to delay given earlier hawkish signals.

Switzerland Unemployment Rate s.a (MoM) unchanged at 3% in April

Switzerland Foreign Currency Reserves: 716B (April) vs previous 721B

Austria Wholesale Prices n.s.a (MoM) dipped from previous 3.9% to 1.1% in April

Austria Wholesale Prices n.s.a (YoY): 6.7% (April) vs 5.4%

Austria Trade Balance increased to €342M in February from previous €-66.7M

France Current Account fell from previous €-1.8B to €-8.2B in March

France Trade Balance EUR below expectations (€-5.6B) in March: Actual (€-6.9B)

France Exports, EUR: €52.5B (March) vs €52.013B

France Imports, EUR increased to €59.3B in March from previous €57.791B

Rabobank’s Senior Market Strategist Benjamin Picton notes that Brent crude fell sharply as markets focused on potential peace in the Iran conflict and a reopening of the Strait of Hormuz.