The British Pound (GBP) faces roadblocks in extending the early recovery against the Japanese Yen (JPY) above 216.33 during the European trading session on Friday.

The USD/CAD pair seesaws between tepid gains/minor losses through the early European session on Friday, consolidating its recent losses to the lowest level since June 17, touched the previous day.

Here is what you need to know on Friday, July 31:

MUFG’s Derek Halpenny and Abdul-Ahad Lockhart note that the Japanese Yen surged as USD/JPY dropped from 163.00 to 158.00, in a move they attribute to probable Ministry of Finance intervention during New York trading.

The New Zealand Dollar (NZD) ticks lower against the US Dollar (USD) on Friday, but remains steady near eight-week highs at 0.5885, with downside attempts contained above a previous resistance area at 0.5860 so far.

The US Dollar (USD) gives back some of its early gains against the Japanese Yen (JPY), but is still 0.5% higher at around 160.30 during the European trading session on Friday.

DBS Group Research economist Radhika Rao notes India’s onshore markets are being pulled between higher Oil prices and improving capital flows.

Silver price (XAG/USD) declines after two days of gains, trading around $58.10 per troy ounce during the early European hours on Friday. The non-yielding white metal is facing notable challenges amid expectations for tighter Federal Reserve (Fed) monetary policy.

The Euro (EUR) nudges lower against the US Dollar (USD) on Friday, but remains near six-week highs, holding well above 1.1500 so far, on track for a 1.3% rally this week, its best weekly performance in nearly four months.

The AUD/USD pair gathers strength to near 0.7035, the highest since June 17, during the early European session on Friday. Expectations that the Reserve Bank of Australia (RBA) might implement another interest rate hike this year underpin the Australian Dollar (AUD) against the US Dollar (USD). 

ING’s Francesco Pesole writes that EUR/USD broke above 1.150 as broad Dollar weakness persisted, even as the Euro underperformed some G10 peers despite stronger Eurozone data.

USD/CHF gains ground after two days of losses, trading around 0.8070 during the Asian hours on Friday.

Commerzbank’s Volkmar Baur reports that Japan’s Ministry of Finance intervened in FX markets, with apparent US Treasury support, to address a weak Japanese Yen as Tokyo inflation stabilises around 2% with upside risks.

The Euro (EUR) is trading practically flat against the British Pound (GBP) on Friday, as bears kept testing the base of the ascending trendline from mid-July highs, around 0.8555, following Thursday’s reversal from 0.8585 highs.

The GBP/USD pair trades in negative territory around 1.3445 during the early European trading hours on Friday. Heightened Middle East tensions and rising global oil prices provide some support to a safe-haven currency such as the US Dollar (USD) against the British Pound (GBP).

The Indian Rupee (INR) extends the week-long rally against the US Dollar (USD) on Friday.

The USD/CAD pair edges higher during the Asian session on Friday and, for now, seems to have snapped a three-day losing streak to the lowest level since June 17, touched the previous day.

The EUR/USD pair trades in negative territory around 1.1500 during the early European trading hours on Friday. The Euro (EUR) softens against the US Dollar (USD) as escalating tensions in the Middle East weigh on riskier assets. 

The AUD/JPY cross builds on the previous day's goodish rebound from sub-111.00 levels, or the lowest since April 7, and gains strong positive traction during the Asian session on Friday.

USD/JPY rises after two days of losses, trading around 160.80 during the Asian hours on Friday. The currency pair continues to appreciate as the Japanese Yen (JPY) weakens following the Bank of Japan’s (BoJ) decision to keep its short-term interest rate unchanged at 1.00%.

The Euro (EUR) extends the intraday rally to near 185.20 against the Japanese Yen (JPY) after the Bank of Japan’ (BoJ) monetary policy decision during the Asian trading session on Friday. The BoJ has kept interest rates steady at 1%, as expected, with an 8-1 majority.

GBP/USD loses ground after three days of gains, trading around 1.3450 during the Asian hours on Friday. The pair depreciates as the US Dollar (USD) gains support from a hawkish pause by the Federal Reserve (Fed) and an internal FOMC policy split.

AUD/USD inches lower after registering over 1% gains in the previous day, trading around 0.7020 during the Asian hours on Friday. The pair remains subdued following the release of disappointing Chinese Purchasing Managers' Index (PMI) data.

The USD/JPY pair is seen building on the previous day's late recovery from sub-158.00 levels, or the lowest since May 14, and gaining positive traction during the Asian session on Friday.

NZD/USD loses ground after three days of gains, trading around 0.5870 during the Asian hours on Friday. Traders are treading cautiously while awaiting the release of China's Purchasing Managers Index (PMI) data scheduled for later in the day.

On Friday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7894 compared to the previous day's fix of 6.7892.

The EUR/ USD pair loses ground to near 1.1515 during the early Asian trading hours on Friday. The Euro (EUR) softens against the US Dollar (USD) amid risk-off sentiment and fears of wider war in the Middle East.

AUD/USD trades above 0.7000, up 1.06% and roughly 85 pips clear of a session low set just below 0.6950 in the early European hours. The advance cut through the 50-day Exponential Moving Average (EMA) sitting at 0.7000, a level the pair has been rejected at repeatedly since June.

USD/JPY trades just above 159.50, down 2.31% and more than five Yen below a high set just short of 164.00.

The Bank of England held Bank Rate at 3.75% for a fifth straight meeting on Thursday, and the Monetary Policy Committee (MPC) got there on a 6-3 vote, with three members backing an immediate quarter-point increase against a consensus that had looked for 7-2.