The Mexican Peso appreciates against the US Dollar, testing two-year highs near 16.85 as the USD/MXN sets aside a strong US Nonfarm Payrolls report, which was ignored by the Peso’s bears.

The USD/CHF registers modest gains of over 0.30% as the Greenback is boosted by a solid US Nonfarm Payrolls report, pushing the pair above the 50-day Simple Moving Average (SMA) to reach a daily high of 0.8126. At the time of writing, trades at 0.8098.

The Pound Sterling retreats some 0.09% against the US Dollar as the latest US inflation report reaffirmed what Fed Chair Warsh said that the labour market is “consistent with full employment.” GBP/USD trades near Friday’s opening price of 1.3512.

OCBC’s Christopher Wong notes that strong foreign-currency inflows linked to the RBI’s special measures have bolstered the Indian Rupee (INR) and strengthened the central bank’s FX buffer.

Nordea expects Eurozone inflation dynamics to stay persistent, with headline inflation projected above the ECB’s target at least until spring 2027.

AUD/USD resumes its advance on Friday after a brief bout of weakness following a stronger-than-expected United States (US) employment report.

EUR/USD sees sharp two-way price swings on Friday after a stronger-than-expected United States (US) employment report triggers fresh volatility. The pair initially fell to an intraday low of 1.1585 before recovering as the US Dollar (USD) struggled to sustain its gains.

USD/CHF trades higher on Friday as stronger-than-expected United States (US) Nonfarm Payrolls (NFP) data trigger fresh volatility. The pair jumped to 0.8126 following the release before giving back part of its advance. At the time of writing, USD/CHF trades around 0.8102, up nearly 0.34% on the day.

TD Securities strategists note that Canada’s softer August labour report, including weaker employment momentum and slower wage growth, is unlikely to materially change the Bank of Canada’s (BoC) assessment of the labour market.

USD/CAD accelerates sharply higher on Friday, trading around 1.3850 at the time of writing, up 0.39% on the day.

GBP/USD recovers part of its initial drop on Friday after stronger-than-expected United States (US) employment data briefly lifts the US Dollar (USD). The pair fell to an intraday low of 1.3482 immediately after the release before rebounding. At the time of writing, GBP/USD trades around 1.3512.

EUR/USD comes under selling pressure on Friday as the US Dollar (USD) strengthens following the release of the upbeat United States (US) employment report. At the time of writing, the pair trades around 1.1605, down roughly 0.18% on the day, after retreating from an intraday high of 1.1633.

USD/JPY trades around 155.85 on Friday at the time of writing, virtually unchanged on the day.

Societe Generale reports that USD/MXN has moved back below 17.00 as Mexican officials engage with US counterparts on trade issues following a widening US-Canada rift. The bank highlights a sharp drop in Mexico’s car imports from China after tariff adjustments aimed at protecting local jobs.

EUR/GBP trades on the back foot on Friday, snapping a four-day winning streak that pushed the cross above 0.8600 to its highest level since July 1. Softer-than-expected Eurozone Retail Sales data weighs modestly on the Euro (EUR).

MUFG’s Michael Wan highlights a sharp strengthening in the Japanese Yen, with USD/JPY dropping from 160 to around 155.30 as the Dollar broadly weakened and Asian FX gained.

The Canadian Dollar (CAD) holds minor losses against the US Dollar (USD) on Friday, as the USD/CAD pair trades just above 1.3800 after bouncing from two-week lows at 1.3765.

The Australian Dollar (AUD) trades marginally higher at around 0.7203 against the US Dollar (USD) during the European trading session on Friday. The Aussie pair is broadly firm as the US Dollar remains under pressure, with traders reassessing Federal Reserve (Fed) interest rate expectations.

The British Pound (GBP) has retreated from session highs just below 1.3550 against the US Dollar (USD) during the London trading session, returning to levels near 1.3520 and turning negative on the daily chart.

AUD/JPY advances on Friday and trades around 112.65 at the time of writing, up 0.39% on the day.

MUFG’s Lee Hardman notes that the Japanese Yen (JPY) has strengthened sharply, pushing USD/JPY back towards the 155.00 support level that has held several times this year.

Rabobank’s Senior FX Strategist Jane Foley highlights that the British Pound (GBP) is vulnerable as global bond market pressure focuses on high-debt countries facing elections or budget talks.

Eurozone Retail Sales contracted at a 0.6% pace Month-on-Month (MoM) in June, while they were anticipated to rise by 0.3%.

ING’s Chris Turner writes that EUR/USD is grinding higher as markets reverse the earlier sell-off triggered by Kevin Warsh’s speech, with the pair moving back toward 1.1650. A softer Dollar backdrop versus EMFX and pro-growth G10 currencies supports the Euro.

The GBP/USD pair attracts some buyers for the second straight day, though it lacks follow-through and remains capped near mid-1.3500s through the early European session on Friday.

The Euro (EUR) posts moderate gains against the Japanese Yen (JPY) on Friday, with the EUR/JPY pair trimming some losses after a whopping 500-pip sell-off in the previous two days. Euro bulls, however, remain capped below 182.00, after bouncing up from one-month lows at 180.53 on Thursday.

Geoff Yu at BNY highlights that USD/JPY around 160 has become a credible deterrent level for FX participants, even without clear evidence of official intervention.

The GBP/JPY cross stages a goodish intraday recovery from the vicinity of the 210.00 psychological mark, though it remains on track to register heavy weekly losses.

The Japanese Yen (JPY) is trimming some gains against the US Dollar (USD) on Friday, but still on track to its strongest weekly performance since July’s US-Japan coordinated intervention.

EUR/CAD declines after opening at a bullish gap, remaining steady at 1.6040 during the early European hours on Friday.