UOB’s Quek Ser Leang and Lee Sue Ann describe USD/CNH as consolidating after a move to 6.7200, with momentum slowing in the very near term.

US Treasury yields turned mixed on Friday as the long-end of the curve, the 20s and 30s, posted gains while the short-end and the belly of the yield curve retreated to multi-year high levels. The US 10-year Treasury yield holds firm at 5.20% after peaking at a 19-year high of 5.228%.

ING’s Asia-Pacific research notes that South Korea’s upcoming data should show stronger industrial production and a widening trade surplus, even as export and import growth moderates. Technology and semiconductor exports are expected to underpin the surplus.

United States CFTC Gold NC Net Positions: $225.9K vs previous $230.3K

United Kingdom CFTC GBP NC Net Positions: £-82.6K vs previous £-58.7K

United States CFTC S&P 500 NC Net Positions down to $-133.2K from previous $-100.5K

Japan CFTC JPY NC Net Positions fell from previous ¥120.4K to ¥72K

Eurozone CFTC EUR NC Net Positions: €-52.3K vs previous €-27K

United States CFTC Oil NC Net Positions increased to 141.1K from previous 135.9K

Societe Generale describes a limited impact from President Xi’s US visit, with no new tariff cuts or AI dialogue mechanism agreed as the trade truce was only extended to January.

Cleveland Fed President Beth Hammack said the two sides of the Fed's dual mandate are not in conflict. She said that “high inflation complicates economic planning,” and that she doesn’t see current policy as restraining the economy.

UOB’s Quek Ser Leang and Lee Sue Ann note USD/SGD held steady around 1.2800 after Wednesday’s surge, with the Singapore Dollar (SGD) supported by expectations of further MAS tightening.

The European Central Bank Vice President Boris Vujcic said that the ECB started a tightening cycle and sees a “risk of higher for longer energy prices” and added that diesel prices will stay for long, feeding into inflation.

OCBC strategists Sim Moh Siong and Christopher Wong report that Asian FX traded broadly softer as higher Oil prices and rising US Treasury yields hurt risk sentiment, with Indonesian Rupiah (IDR) underperforming and Philippine Peso (PHP), Indian Rupee (INR) and Thai Baht (THB) also weaker.

The Cleveland Fed President Beth Hammack is crossing the wires on Friday.

Scotiabank strategists Shaun Osborne and Eric Theoret note that the Canadian Dollar (CAD) is flat versus the US Dollar (USD) and lagging most G10 peers. They highlight that wider US–Canada yield spreads have weighed on the CAD, but see the move as stretched.

ING economists Deepali Bhargava and Lynn Song expect the Reserve Bank of Australia (RBA) to raise rates by 25bp, citing a still-hot economy, tight labour market conditions and upside surprises in Gross Domestic Product (GDP) and inflation.

Societe Generale notes Central and Eastern European (CEE) currencies, including the Hungarian Forint (HUF), are set to weaken about 3% against the Euro (EUR) this week as EUR/USD falls below 1.14.

New York Federal Reserve (Fed) Bank John Willams said in a panel discussion at Oxford University on Friday that although tariffs and higher energy prices don’t to a sustainable inflation. However, repeated supply shocks are keeping price pressures higher.

Japanese Finance Minister (FM) Satsuki Katayama stresses on Bank of Japan’s (BoJ) independence while speaking during the European trading session on Friday. This is the second time in the day when Katayama has delivered remarks on economy and currency.

Bank of England (BoE) Governor Andrew Bailey said on Friday that the pass-through from higher energy prices remains “quite subdued” so far, while stressing that it is still early days.

Commerzbank’s India section notes September flash PMIs pointing to stronger end-Q3 activity, with both manufacturing and services indices well above 50. Domestic demand is robust, but elevated input and output prices, especially in manufacturing, keep upside inflation risks high.

OCBC strategists Sim Moh Siong and Christopher Wong note that the Swiss National Bank (SNB) kept rates at 0% and toned down its FX intervention language, signalling more tolerance for a firmer Swiss Franc but not a hawkish shift.

ING strategist Frantisek Taborsky reports that volatility in core rates and high Oil and gas prices are driving elevated tightening expectations across CEE, with roughly 125bp priced for Poland and the Czech Republic.

Commerzbank’s Tatha Ghose notes the National Bank of Hungary paused cuts at 5.50% but lowered its medium‑term inflation target to 2.5% while simultaneously lifting 2027 inflation forecasts.

Standard Chartered’s Christopher Graham examines whether the Bank of England will feel pressured to follow the Federal Reserve’s September rate hike. He notes that Fed tightening alone does not force the BoE to act and stresses the role of UK data and market credibility.

Deutsche Bank strategists report renewed pressure on global equities as surging bond yields and higher Oil prices weigh on risk assets. The S&P 500 slipped for a third session despite a late recovery, while European indices saw broader declines.

USD/JPY halts its five-day winning streak, trading around 158.10 during Asian hours on Friday. The currency pair depreciates as the Japanese Yen (JPY) gathers support. Market participants are remaining on high alert, anticipating potential market intervention by Japanese authorities.

The USD/CAD pair gathers strength to around 1.4150 during the early European trading hours on Friday. Mounting bets on further Federal ‌Reserve (Fed) rate hikes provide some support to the US Dollar (USD) against the Canadian Dollar (CAD).

Gold prices fell in India on Friday, according to data compiled by FXStreet.