Deutsche Bank’s Shreyas Gopal reiterates a long EUR/GBP stance after United Kingdom (UK) local elections, arguing that UK political uncertainty is likely to persist through summer.

Commerzbank’s Michael Pfister argues that Japanese authorities cannot rely on FX interventions alone to support the Japanese Yen (JPY) against the US Dollar (USD).

The AUD/USD pair attracts heavy selling for the second consecutive day on Friday and breaks through the 0.7200 mark, hitting an over one-week low during the first half of the European session.

Societe Generale analysts report EUR/USD has fallen to its lowest level since early April as wider UST/Bund spreads and higher energy prices weigh on the Euro (EUR). The pair has broken below its 50- and 200-day moving averages, with support cited at 1.1560 and resistance at 1.1720.

The Euro (EUR) trades sharply lower against the US Dollar (USD) around 1.1630 during the European trading session on Friday, the lowest level seen in over a month.

The Euro (EUR) rallies for the second consecutive day against an ailing British Pound (GBP) on Friday, crushed by growing political uncertainty in the UK.

Here is what you need to know on Friday, May 15:

ING's Francesco Pesole highlights a significant technical break in EUR/USD below 1.170, opening scope for a test of 1.160 in coming days.

The GBP/JPY cross attracts some follow-through selling for the second consecutive day and drops to a one-and-a-half-week low during the early European session on Friday. Spot prices, however, rebounded a few pips in the last hour and currently trade near the 211.75 region, down 0.25% for the day.

MUFG’s Derek Halpenny argues that rising crude Oil prices, higher global yields and Middle East tensions are undermining Japanese Yen stability and working against recent Ministry of Finance (MoF) intervention.

The British Pound (GBP) extends losses against the US Dollar (USD) for the fourth consecutive day on Thursday, trading at 1.3337 at the time of writing, as the crisis in the UK cabinet deepens, fuelling concerns about a power vacuum that might trigger another fiscal crisis.

EUR/JPY continues its losing streak for the fourth successive day, trading around 184.40 during the European hours on Friday. The technical analysis of the daily chart indicates the currency cross is positioned slightly below the upper boundary of an emerging descending wedge pattern.

The USD/CHF pair prolongs its weekly uptrend for the fifth consecutive day on Friday and touches over a two-week high, near the 0.7860-0.7865 region during the early European session amid a broadly firmer US Dollar (USD).

Commerzbank’s Tatha Ghose flags a sharp March deterioration in Turkey’s balance of payments, with a near-doubling of the current-account deficit, heavy capital outflows and a record drop in official reserves. The bank argues underlying vulnerabilities predated the Iran conflict.

The NZD/USD pair slumps to near 0.5860 during the early European trading hours on Friday.

The AUD/USD pair trades 0.8% lower to near 0.7160 against the US Dollar (USD) during the European trading session on Friday. The Aussie pair faces intense selling pressure as the US Dollar outperforms its peers amid a significant surge in US Treasury yields.

Commerzbank’s Michael Pfister highlights mounting political turmoil in the United Kingdom (UK), with resignations and leadership speculation tightening pressure on Prime Minister Keir Starmer. He sees rising uncertainty over future fiscal policy as negative for the Pound (GBP).

EUR/USD continues its losing streak for the fifth consecutive day, trading around 1.1650 during the Asian hours on Friday.

The USD/CAD pair gathers strength to around 1.3755 during the early European trading hours on Friday. The pair is set for its largest weekly gain in more than two months, as rising energy prices stoked inflationary pressures, boosting expectations of a ‌Federal Reserve (Fed) rate hike this year.

The USD/JPY pair extends its winning streak for the fifth trading day on Friday, trading 0.11% higher to near 158.60 during the early European trading session.

The Indian Rupee (INR) trades close to its all-time low against the US Dollar (USD) in the opening trade on Friday.

The AUD/JPY cross trades in negative territory around 114.00 during the early European session on Friday. The China-proxy Australian Dollar (AUD) softens against the Japanese Yen (JPY) amid the lack of progress to open the Strait of Hormuz.

The GBP/JPY cross drifts lower for the second consecutive day – also marking the third day of a negative move in the previous three – and slides below the 212.00 mark, hitting a one-and-a-half-week low during the Asian session on Friday.

USD/CHF gains ground for the fifth consecutive day, trading around 0.7850 during the Asian hours on Friday. The pair appreciates as the US Dollar (USD) advances following the release of robust US Retail Sales data.

The EUR/USD pair extends its losing streak for the fourth trading day on Friday, trading 0.15% lower to near 1.1653 during the Asian trading session.

The GBP/USD pair faces some selling pressure near 1.3365 during the Asian trading hours on Friday. The British Pound (GBP) weakens against the US Dollar (USD) amid political uncertainty in the United Kingdom (UK) and risk-off sentiment. 

South Korea Trade Balance dipped from previous $23.77B to $23.76B in April

USD/CAD extends its winning streak for the eighth straight day, trading around 1.3740 during the Asian hours on Friday. The Canadian Dollar (CAD) continues to struggle due to its heavy reliance on the energy sector.

The AUD/USD pair attracts some sellers to near 0.7205 during the early Asian trading hours on Friday. Markets remain cautious ahead of the second day meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing on Friday.

On Friday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8415 compared to the previous day's fix of 6.8401 and 6.7976 Reuters estimate.