The USD/CAD pair remains under some selling pressure for the third consecutive day and trades near a three-month low, just above mid-1.3700s during the first half of the European session on Friday.

Preliminary HCOB Manufacturing Purchasing Managers’ Index (PMI) in the Eurozone expands at a surprisingly faster pace to 52.8 in August from 51.9 in July. Manufacturing activity was anticipated to expand but at a moderate pace to 51.8.

Chris Turner at ING explains that USD/CHF’s sharp drop after the US Treasury buy-back announcement was mainly position adjustment after a hawkish Fed narrative had favoured longs.

Volkmar Baur at Commerzbank argues that July inflation and strong Purchasing Managers' Index (PMI) data in Japan suggest price dynamics would not block a Bank of Japan (BoJ) rate hike.

United Overseas Bank’s (UOB) Quek Ser Leang reports GBP/USD at 1.3640 remains supported after breaking key resistance levels, with intraday gains likely capped between 1.3605 and 1.3670.

ING’s Chris Turner says EUR/USD remains well supported by broad Dollar softness. Expected mild eurozone growth in the August PMIs and elevated inflation expectations keep the case for another European Central Bank (ECB) hike alive.

The British Pound (GBP) holds onto Thursday’s gains at around 217.00 against the Japanese Yen (JPY) during the European trading session on Friday.

The AUD/USD pair regains positive traction following the previous day's dismal Aussie jobs data-led modest fall and climbs to a fresh high since early June during the first half of the European session.

Silver (XAG/USD) rallies for the third consecutive day on Friday, hitting fresh two-month highs above $69.00 in the early European session.

MUFG’s Michael Wan highlights that FX measures to attract US Dollar (USD) inflows into India have significantly lowered Indian Rupee (INR) rates via added liquidity, with limited impact on USD/INR.

The EUR/GBP cross posts modest gains to around 0.8570 during the early European session on Friday. The British Pound (GBP) edges slightly lower against the Euro (EUR) following disappointing UK economic data.

Here is what you need to know on Friday, August 21:

The British Pound (GBP) trades firm against the US Dollar (USD) on Friday, with the GBP/USD pair pushing against six-month highs in the 1.3660 area at the time of writing, on track for a 0.8% weekly rally.

United Overseas Bank’s (UOB) Quek Ser Leang highlights EUR/USD at 1.1685 holding recent gains, with intraday trading likely between 1.1655 and 1.1715.

The AUD/JPY cross trades in positive territory near 113.55 during the early European session on Friday. The Australian Dollar (AUD) strengthens against the Japanese Yen (JPY) despite the cooling labor market. The minutes of the Reserve Bank of Australia (RBA) meetings will be released next Tuesday. 

The EUR/USD pair attracts some dip-buyers during the Asian session on Friday and climbs back closer to its highest level since May 14, set the previous day, with bulls now awaiting a move beyond the 1.1700 mark before placing fresh bets.

EUR/JPY remains stronger for the second successive day, trading around 186.00 during the Asian hours on Friday. The technical analysis of a daily chart indicates that the spot is moving higher within the ascending channel pattern, signaling a persistent bullish bias.

The Japanese Yen (JPY) trades in a limited range at around 159.00 against the US Dollar (USD) during the Asian trading session on Friday. The pair consolidates, while both the JPY and the USD are underperforming against their other currency peers.

The Swiss Franc (CHF) resumes its upside journey against the US Dollar (USD) on Friday after a corrective move the previous day. The USD/CHF pair is down 0.17% to near 0.7990 in the Asian trading session.

The AUD/USD pair gains traction to near 0.7135 during the Asian trading hours on Friday. The US Dollar (USD) weakens against the Australian Dollar (AUD) and is set for a weekly loss as traders viewed the US Treasury's bond buyback gambit as merely a temporary fix. 

Silver price (XAG/USD) extends its gains for the third successive day, trading around $68.70 per troy ounce during the Asian hours on Friday. Silver prices rise as investors turn to safe-haven metals amid heightened volatility across global currency and bond markets.

USD/CAD extends its losses for the third successive day, trading around 1.3770 during the Asian hours on Friday. The currency pair loses ground as the commodity-linked Canadian Dollar (CAD) receives support from rising crude oil prices.

The NZD/USD pair attracts buyers for the third straight day and climbs to a fresh high since early June, around the 0.5965-0.5970 region during the Asian session on Friday. Spot prices remain on track to register strong weekly gains amid a supportive fundamental backdrop.

EUR/USD remains stronger for the third consecutive day, trading around 1.1680 during the Asian hours on Friday. The Euro (EUR) gains ground against the US Dollar (USD), bolstered by strong economic fundamentals across the region.

On Friday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7817 compared to the previous day's fix of 6.7808 and 6.7262 Reuters estimate.

The USD/JPY pair holds steady near 159.05 during the early Asian session on Friday. Growing speculation that the Bank of Japan (BoJ) could raise interest rates next month offsets the weaker Gross Domestic Product (GDP) data.

The GBP/JPY advanced over 0.72%, refreshing a 14-day high of 216.90, with buyers eyeing a breakout above 217.00, which could open the door to a retest of the yearly highs hit in mid-July. The pair trades at 216.73 after bouncing off the daily low of 215.04.

The Australian Dollar retreated against the Greenback on Thursday as US bond yields resumed their advance, despite the US Treasury's efforts to cap elevated yields following its announcement of a long-end bond buyback program. The AUD/USD trades at 0.7114, down 0.14%.

The preliminary reading of Australia's S&P Global Manufacturing Purchasing Managers Index (PMI) came in at 52.0 in August versus 52.0 prior, the latest data published by S&P Global showed on Friday.

USD/JPY trades near 159.00 late in the session, 0.5% higher on the day and a little over a point clear of a rising 200-day Exponential Moving Average (EMA) near 158.00.