BNY reports that Bundesbank President Joachim Nagel has signaled a likely European Central Bank rate hike in June unless the outlook improves, reinforcing a hawkish bias.

BNY’s Bob Savage highlights that suspected FX intervention has driven a sharp Japanese Yen rebound, with the Ministry of Finance signaling readiness to act in both currency and crude oil futures. The focus is now on key USD/JPY levels around 155–158 as authorities seek to counter Yen weakness.

GBP/JPY stages a modest rebound on Friday after coming under selling pressure earlier in the day amid suspected intervention by Tokyo for a second straight day to curb excessive weakness in the Japanese Yen (JPY).

AUD/USD trades around 0.7200 on Friday at the time of writing, virtually unchanged on the day and holding near recent highs, as markets adopt a wait-and-see approach ahead of the Reserve Bank of Australia (RBA) monetary policy decision scheduled for Tuesday.

The Pound (GBP) has turned positive on the daily chart against the Japanese Yen (JPY) on Friday, trading at levels a few pips above 213.00 at the time of writing, up from session lows at 211.78 earlier in the day.

The Japanese Yen (JPY) gives up gains recorded in the early European trade against the US Dollar (USD) during the early North American trading session on Friday. The USD/JPY pair rebounds to near 156.55 after sliding to around 155.50, but is still marginally down.

MUFG’s Derek Halpenny argues that recent Japanese authorities’ action around the 160 level in USD/JPY likely reflects renewed intervention, with the move seen as buying time for the BoJ and government as they face Middle East uncertainty and domestic cost-of-living concerns.

Silver (XAG/USD) is trading within the lower ranges of the $73.00s during Friday’s European session following rejection at a previous support area around $75.00 earlier on the day.

ING’s Chris Turner describes Sterling price action as confusing after the Bank of England’s latest communication. While he sees the BoE laying groundwork for a June hike, some investors interpreted the message as dovish, possibly due to oil-driven declines in GBP rates.

The Pound Sterling (GBP) ticks lower against its major currency peers, trading marginally down to near 1.3590 against the US Dollar (USD) during the European trading session on Friday.

The Euro (EUR) edges up against the British Pound (GBP) on Friday, trading at the 0.8630 area at the time of writing after dropping from Thursday’s highs at 0.8670, but remains dangerously close to the eight-month lows of 0.8610.

Chris Turner at ING notes that recent European Central Bank communication had limited impact on Euro rates and the Euro, with markets still pricing a June rate hike near 90%.

ING’s Chris Turner argues Japanese authorities likely intervened to push USD/JPY back below 160, echoing the 2024 pattern of sizeable FX sales around late April and early May.

The USD/CAD pair extends its sideways consolidative price move through the first half of the European session and currently trades around the 1.3575-1.3570 region, or its lowest level since March 11.

The US Dollar (USD) remains practically flat against the Swiss Franc (CHF) on Friday, wavering within a few pips above 0.7800, on track for a 0.35% weekly loss after dropping from highs above 0.7900 the previous day.

The Australian Dollar (AUD) trades lower against its major currency peers during the European trading session on Friday. The Australian currency is slightly under pressure as investors turn cautious ahead of the Reserve Bank of Australia’s (RBA) monetary policy announcement on Tuesday.

The GBP/JPY pair gives up its early gains and turns negative to near 212.00 during the European trading session on Friday.

The US Dollar (USD) plunged nearly 200 pips against the Japanese Yen (JPY) in the early European session on Friday, likely due to another intervention by Japanese authorities.

EUR/JPY loses ground for the second successive day, trading around 183.00 during early European hours on Friday.

The Euro (EUR) is trading moderately lower against the US Dollar (USD) on Friday, retreating to 1.1719 at the time of writing, down from highs above 1.1740 on Thursday. The pair, however, maintains most of the previous day’s gains, with market volumes thinned on the May 1 labor holiday.

The NZD/USD pair loses traction to around 0.5890 during the early European session on Thursday. The US Dollar (USD) strengthens against the New Zealand Dollar (NZD) as escalating tensions in the Middle East and a continued blockade of the Strait of Hormuz boost a safe-haven asset. 

The GBP/USD pair trades firmly near an over two-month high of around 1.3610 during the European trading session on Friday. The Cable outperforms as the Pound Sterling (GBP) reflects strength, following the Bank of England’s (BoE) monetary policy announcement on Thursday.

The USD/CAD pair trades with caution near Thursday’s low at around 1.3580 during the late Asian trading session on Friday. The Loonie pair trades weakly as the US Dollar (USD) is broadly under pressure, following Japanese intervention in the forex markets.

The EUR/GBP cross holds steady around 0.8625 during the early European session on Friday.

The USD/JPY pair builds on the previous day's late rebound from the vicinity of mid-155.00s, or over a two-month trough, and gains some positive traction during the Asian session on Friday.

The AUD/USD pair holds onto Thursday’s gains near 0.7200 during the Asian trading session on Friday.

USD/CHF inches higher after posting 1.25% losses in the previous day, trading around 0.7820 during the Asian hours on Friday. The pair gains ground as the safe-haven demand supports the US Dollar (USD) against its major peers.

The AUD/JPY cross holds positive ground near 113.10 during the early European session on Friday. The cross remains firm after pulling back from a multi-decade high of 114.72. However, the potential upside for AUD/JPY might be limited amid intervention fears. 

The GBP/JPY pair is up 0.35% at around 214.00 during the Asian trading session on Friday.

The EUR/USD pair clings to Thursday’s gains near 1.1735 during the Asian trading session on Friday. The major currency pair reflects strength as the US Dollar (USD) holds onto the previous day’s losses, which were driven by suspected Japan’s intervention in forex markets.