USD/JPY trades on the back foot on Friday, pressured by a weaker US Dollar (USD), while the Japanese Yen (JPY) draws support from a more hawkish Bank of Japan (BoJ) outlook. At the time of writing, the pair trades around 158.85, down 0.40% on the day.

EUR/GBP is little changed on Friday, extending the sideways pattern seen through most of the week as traders show a muted reaction to second-quarter Gross Domestic Product (GDP) data from both the Eurozone and the United Kingdom (UK). At the time of writing, the cross trades around 0.8543.

AUD/USD rebounds on Friday and trades around 0.7080 at the time of writing, gaining 0.31% on the day after falling as low as 0.7044 on Thursday.

Nordea strategists remain constructive on the Swedish Krona (SEK), viewing it as undervalued and supported by robust domestic fundamentals and improving macro data.

The Swiss Franc (CHF) picks up from two-week lows as the US Dollar (USD) struggles with markets cutting back bets of a Federal Reserve  (Fed) interest rate hike in September.

The British Pound (GBP) trades 0.35% higher to near 1.3533 against the US Dollar (USD) during the European trading session on Friday.

Societe Generale strategists highlight that the South African Rand (ZAR) continues to outperform in CEEMEA, gaining about 2.4% versus the US Dollar (USD) in spot terms this month. USD/ZAR is close to breaking below 16.00 for the first time since February.

The Canadian Dollar (CAD) outperforms a majority of its currency peers on Friday, with the USD/CAD pair trading 0.32% lower at around 1.3888. The Canadian currency gains on hopes of a United States (US)-Canada interim deal.

The New Zealand Dollar (NZD) appreciates on Wednesday as the US Dollar (USD) loses ground across the board amid dwindling hopes of immediate Federal Reserve interest rate hikes.

The Euro (EUR) holds moderate gains against the US Dollar (USD) on Friday, as Eurozone Gross Domestic Product (GDP) came in line with market forecasts while June's Trade Balance beat forecasts.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann judge USD/JPY price action as inconclusive intraday, with trading expected between 159.00 and 159.70 after a tight 159.01–159.56 range.

Societe Generale’s Dev Ashish flags growing election and fiscal risks weighing on Brazilian assets. BRL has underperformed in LatAm, with USD/BRL nearing its 200-day moving average at 5.2042 and Bovespa breaking below its long-term average.

According to Eurostat, the Eurozone Gross Domestic Product (GDP) growth in the second quarter this year remains at 0.4% as shown by the preliminary data.

The British Pound (GBP) pares losses against a weaker US Dollar (USD) on Friday, as a run of soft US inflation figures and growing signs of labour market deterioration have cast doubt about the odds for an immediate Federal Reserve (Fed) rate hike.

The Euro (EUR) trades flat at around 183.85 against the Japanese Yen (JPY) during the European trading session on Friday. The cross consolidates while investors seek fresh cues regarding whether there will be more United States (US)-Japan joint intervention to prop up the Japanese currency.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD is consolidating intraday between 0.7050 and 0.7075 after a brief spike to 0.7091 failed to build momentum.

The USD/JPY pair sticks to modest intraday losses through the first half of the European session on Friday, though it manages to hold above the 159.00 mark and remains close to a two-week top set the previous day.

The Euro (EUR) trades 0.17% higher at around 1.1550 against the US Dollar (USD) during the European trading session on Friday. The major currency pair gains as the Euro rises due to firm expectations that the European Central Bank (ECB) will raise interest rates in the policy meeting in September.

The Australian Dollar (AUD) is trading a tad firmer against the Dollar (USD) on Friday, fuelled by hawkish remarks by Reserve Bank of Australia’s (RBA) Assistant Governor, Chris Kent.

Rabobank strategist Elwin de Groot highlights that Japanese policymakers are increasingly focused on achieving the inflation target sustainably and supporting the Japanese Yen. Following recent FX intervention, He argues that exchange-rate management ultimately needs monetary policy backing.

The USD/CAD pair extends the previous day's decline from the top end of the weekly range and attracts follow-through selling for the second straight day.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report GBP/USD price action remains confined, with intraday moves seen between 1.3475 and 1.3515 as momentum has faded.

ING FX Strategist Francesco Pesole highlights that EUR/USD appears modestly undervalued, with short-term fair value estimated around 1.160–1.1650 based on swap spreads.

The USD/CAD pair attracts some sellers to around 1.3910 during the early European trading hours on Friday. The US Dollar (USD) weakens against the Canadian Dollar (CAD) as cooled US inflation data have tempered aggressive Federal Reserve (Fed) rate-hike bets.

NZD/USD gains ground after four days of losses, trading around 0.5870 during the early European hours on Friday. The pair appreciates as the New Zealand Dollar (NZD) receives support from traders continuing to price in a Reserve Bank of New Zealand (RBNZ) rate hike next month.

The British Pound (GBP) faces mild selling pressure against the Japanese Yen (JPY) during the European trading session on Friday.

Here is what you need to know on Friday, August 14:

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that EUR/USD is consolidating after a brief spike, with the pair expected to trade intraday in a slightly higher 1.1515–1.1550 range as the underlying tone firms.

Silver price (XAG/USD) extends its losses for the second consecutive day, trading around $63.50 per troy ounce during the Asian hours on Friday.

The AUD/JPY cross trades in negative territory around 112.55 during the early European trading hours on Friday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) as traders remain on high alert for further currency intervention from Japanese authorities.