The USD/JPY pair trades near 161.00 on Friday, easing slightly after reaching a two-year high of 161.81 on Thursday, and breaking a five-day winning streak for the US Dollar (USD).The Japanese Yen (JPY) remains fragile as pressure mounts over a possible new intervention by authorities to strengthen

The Swiss Franc is the weakest major into the weekly close, dragging USD/CHF to a fresh high for the year. The tidy explanation is a wartime safe-haven bid unwinding now that the US and Iran have struck a deal; the trouble is that the Franc was never much of a haven in this war.

USD/CHF extends gains on Friday even as the US Dollar (USD) eases slightly after rising to more than one-year highs. Diverging monetary policy expectations between the Federal Reserve (Fed) and the Swiss National Bank (SNB) keep demand tilted toward the US Dollar over the Swiss Franc (CHF).

NZD/USD trades around 0.5740 at the time of writing on Friday, down 0.28% on the day, as the US Dollar (USD) continues to benefit from expectations of a restrictive monetary policy stance in the United States (US).

The Pound Sterling recovers some ground after reaching a three-month low on Friday at 1.3163, sponsored by the Fed’s hawkish tilt, but edges up 0.18% amid thin trading conditions due to a holiday in the US. The GBP/USD trades at 1.3226, yet it is poised to end with weekly losses of 1.25%.

EUR/USD stages a rebound on Friday as a pullback in the US Dollar (USD) helps the Euro (EUR) stabilize after recent losses. At the time of writing, the pair trades around 1.1470 after bouncing from a three-month low of 1.1417 touched earlier in the day.

Nordea’s research suggests EUR/USD upside is constrained in coming months by interest rate differentials and relative growth. The European Central Bank is seen closer to the end of its hiking cycle than the Federal Reserve, while Eurozone data remain softer than US figures.

Nordea expects USD/JPY to remain high as wide US–Japan yield differentials persist and the Bank of Japan stays very accommodative. While some gradual BoJ normalization is anticipated, it is seen as too modest to materially weaken the Japanese Yen near term.

USD/CAD trades on the front foot on Friday despite a modest pullback in the US Dollar (USD), as weaker-than-expected Canadian Retail Sales data weighs on the Canadian Dollar (CAD). At the time of writing, the pair trades around 1.4170, its highest level since April 2025.

ING’s Francesco Pesole highlights that Andy Burnham’s by-election win paves his way to become UK Prime Minister, with betting markets expecting a transition by late summer. The absence of a political risk premium in Pound assets suggests investors see limited fiscal disruption.

UOB Global Economics & Markets Research reports that GBP/USD fell sharply after the Bank of England left rates unchanged at 3.75%, before trimming losses to trade near 1.3236. The BOE decision saw a 7–2 vote, with two members preferring a hike to 4.00%.

DBS Group Research strategist Chang Wei Liang notes that USD/JPY has broken above 161, returning to levels that previously triggered official action.

UOB Global Economics & Markets Research notes that the US Dollar extended gains after the Fed’s hawkish hold, pushing USD/JPY sharply higher to 161.37. The pair is now trading near levels that previously triggered Japanese authorities’ intervention.

According to UOB Global Economics & Markets Research, EUR/USD extended its recent decline as the US Dollar index hit a one-year high following the Fed’s hawkish hold.

DBS Group Research strategist Chang Wei Liang warns that GBP/USD could stay volatile after easing towards 1.32, as Labour’s Burnham leads the Makerfield by‑election.

ING’s FX team, led by Francesco Pesole, has updated its EUR/USD projections, now targeting 1.18 by year-end. They expect moderate Dollar depreciation in the third and fourth quarters, helped by a dovish Fed relative to market pricing and fading energy sensitivity.

The Euro (EUR) trades practically flat against the US Dollar (USD) on Friday, changing hands at 1.1460 after bouncing up from three-month lows at 1.1420.

Russia Interest Rate Decision came in at 14.25%, above forecasts (14%)

The Japanese Yen (JPY) remains under pressure against the US Dollar (USD), with the USD/JPY pair trading near multi-decade highs and closing in on the 2024 peak around 162.00.

Brown Brothers Harriman’s Elias Haddad notes that USD/JPY is trading just below its multi-decade high but argues that the recent slump in Oil prices should relieve some pressure on the Japanese Yen.

Elias Haddad at Brown Brothers Harriman writes that GBP/USD has bounced after holding above its late-March low, but he sees risks still tilted lower.

The USD/CHF pair builds on this week's solid rebound from the 0.7900 mark and gains strong follow-through positive traction for the third consecutive day on Friday.

Societe Generale analysts, led by Kenneth Broux, report that GBP/USD has broken below its ascending trendline from April 2025 and is extending declines toward the March low.

The New Zealand Dollar (NZD) is showing the worst performance among major currencies on Friday, extending its decline against the US Dollar (USD) to 0.5724 lows so far, with the year-to-date low of 0.5781 coming closer.

Societe Generale’s Kenneth Broux notes that USD/JPY has resumed its advance after holding a multi‑month trendline near 157.40 and breaking out of consolidation. The pair is approaching the 2024 peak around 162, with key support at 159.65/159.10.

The AUD/USD pair recovers a few pips from over a one-week low, touched earlier this Friday, though it lacks follow-through and currently trades around the 0.7000 psychological mark.

The Japanese Yen (JPY) remains offered against the US Dollar (USD) on Friday, and the USD/JPY pair stands comfortably around 161.30, its highest level since 2024, way beyond the level that triggered an alleged intervention on April 30.

The GBP/JPY cross attracts sellers for the third straight day on Friday, though it finds some support ahead of a one-month low set the previous day following the release of the upbeat UK data.

USD/CAD holds ground for the seventh consecutive day, trading around 1.4140 during the European hours on Friday. The technical analysis of the daily chart indicates the pair is moving upwards within the ascending channel pattern, signaling a persistent bullish bias.

Deutsche Bank reports that the Dollar Index rose 0.65% to 100.98, while EUR/USD slipped to 1.144. The move comes as US Treasuries partially retraced prior Fed‑driven losses, with the 10‑year yield down 3.4 bps and jobless claims slightly above expectations.