AUD/USD retreats 0.30% on Friday to trade around 0.7170 at the time of writing, correcting after reaching its highest level since mid-May at 0.7206 earlier in the day.

Japan delivered the inflation and labour data the Bank of Japan needs to move next month and the Japanese Yen is weaker for a fifth consecutive session.

Canada produced the strongest growth figure of the cycle and the Canadian Dollar is weaker for it.

The Pound Sterling tumbles versus the Greenback on Friday as the Federal Reserve Chair Kevin Warsh puts inflation as the priority on the Fed, increasing the likelihood of an interest rate hike later in the year. The GB/USD trades at 1.3538, down 0.40%.

EUR/USD falls sharply toward 1.1595 on Friday at the time of writing, losing 0.48% on the day, as the US Dollar (USD) rallies following Federal Reserve (Fed) Chair Kevin Warsh’s speech at the Jackson Hole Symposium.

EUR/USD trades around 1.1645 on Friday, posting a modest 0.07% decline on the day as investors adopt a wait-and-see approach ahead of a highly anticipated speech by Federal Reserve (Fed) Chair Kevin Warsh at the Jackson Hole Symposium.

USD/JPY rises 0.14% on Friday and trades around 159.60 at the time of writing, extending its advance for a fifth consecutive day.

BNY’s Geoff Yu highlights that European inflation is firming, with French and Spanish data reinforcing concerns for the European Central Bank (ECB). Governing Council members Kazaks and Schnabel are framed as hawkish voices, stressing the need to prevent persistent price pressures.

USD/CAD trades around 1.3845 on Friday, edging 0.07% lower on the day, as investors refrain from taking large positions ahead of the highly anticipated speech by Federal Reserve (Fed) Chair Kevin Warsh at the Jackson Hole Symposium.

ING’s Chris Turner notes a supportive backdrop for carry trades and says the Brazilian Real (BRL) is also benefiting from polling that narrows President Lula’s lead over Flavio Bolsonaro to one point.

The Australian Dollar (AUD) ticks higher for the fourth consecutive day against the US Dollar (USD) as investors brace for the Federal Reserve (Fed) Chairman Kevin Warsh’s speech at the Jackson Hole Symposium, due later on Friday.

Brown Brothers Harriman’s (BBH) Elias Haddad notes USD/CAD is trading just above its 200‑day moving average near 1.3840 as Canada’s Q2 GDP is expected to rebound strongly, with real GDP seen rising 3.4% SAAR versus a slight Q1 contraction.

Silver (XAG/USD) heads north for the second consecutive day on Friday, with all eyes on the Federal Reserve (Fed) Chairman Kevin Warsh’s speech at the Jackson Hole Symposium, due later on the day.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight AUD/USD’s third consecutive daily gain, with the pair stalling just under the 0.7200 resistance.

MUFG highlights that rising European natural gas prices are reviving inflation risks, which could push the Bank of England toward another rate hike and underpin the Pound.

Commerzbank’s Michael Pfister reviews EUR/USD options, noting that risk reversals turned positive again after comments by the US Treasury Secretary.

The Swiss Franc (CHF) trades marginally lower against a somewhat firmer US Dollar (USD) on Friday, with market volatility subdued as investors await the speech of the Federal Reserve (Fed) Chairman, Kevin Warsh, at the Jackson Hole Symposium, due later on the day.

TD Securities’ FX strategist Howard Du maintains a bearish New Zealand Dollar (NZD) bias, noting that Reserve Bank of New Zealand (RBNZ) tightening is largely priced and NZD positioning has normalized.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/JPY held in a narrow band around 159.35, with a slight uptick in upward momentum. They expect this to translate into trading between 159.15 and 159.65 rather than a sustained advance.

Deutsche Bank strategists note that EUR/USD traded at 1.165 as markets await Fed Chair Warsh’s Jackson Hole speech, which could shift expectations for the September Fed meeting.

Here is what you need to know on Friday, August 28:

The Euro (EUR) nurses moderate losses against the British Pound (GBP), with price action contained within the previous day's range and market volatility muted, as investors brace for Federal Reserve Chairman Kevin Warsh’s speech at Jackson Hole.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD held near 1.1650 after a brief dip, with intraday action lacking strong downside momentum.

The Japanese Yen (JPY) edges lower for the fifth consecutive day against the US Dollar (USD) on Friday, despite hot Tokyo inflation numbers and an unexpected decline in the Unemployment Rate earlier in the day.

Commerzbank’s Volkmar Baur says accelerating inflation in Tokyo has strengthened the case for a Bank of Japan (BoJ) rate hike in September. Markets are pricing an implied probability of around 84% for a move, while the BoJ has yet to give clear guidance on timing.

The NZD/USD pair gathers strength to around 0.5960 during the early European trading hours on Friday. The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) on a hawkish tone from the Reserve Bank of New Zealand (RBNZ). 

The Euro (EUR) has resumed its recent downward trend against the US Dollar (USD) on  Friday, with investors bracing for the Federal Reserve (Fed) Chairman Kevin Warsh’s speech at the Jackson Hole Symposium due later on the day.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note GBP/USD has extended its recent pullback but closed almost unchanged around 1.3595. Oversold conditions and slowing momentum suggest further immediate downside is limited, with intraday trade expected between 1.3570 and 1.3620.

Danske Research Team notes that EUR/USD remains steady near 1.1650 as markets reassess the ECB outlook.

The GBP/USD pair steadies around 1.3590 during the early European session on Friday. Traders pared expectations for ‌an interest rate hike by the Bank of England (BoE) this year and shifted their attention to the annual symposium on monetary policy at Jackson Hole in the US later on Friday.