United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect USD/JPY to trade intraday between 158.80 and 159.25 after a brief pop to 159.34 failed to strengthen momentum.

EUR/GBP trades on the back foot on Friday and is set to end the week in negative territory, as the British Pound (GBP) outperforms most major peers despite weaker-than-expected UK Retail Sales data, while upbeat German economic data fails to provide meaningful support to the Euro (EUR).

Chris Turner at ING says EUR/CHF is effectively being driven by European Central Bank (ECB) expectations, as the Swiss National Bank (SNB) is seen keeping policy unchanged despite some tightening priced in. Softer Eurozone data could limit ECB hikes and pressure EUR/CHF below key support levels.

DBS Group Research economist Radhika Rao notes that the Reserve Bank of India (RBI) has revived monetary operations as the Rupee approached a record low near 97 per US Dollar (USD).

Canada Employment Insurance Beneficiaries Change (MoM) climbed from previous -1.6% to 0.4% in March

Rabobank's Senior US Strategist Philip Marey notes that Kevin Warsh may initially avoid pushing for immediate rate cuts, instead laying out an analytical framework to justify resuming pre-war easing later in 2026.

Canada Retail Sales (MoM) came in at 0.9%, above forecasts (0.6%) in March

Canada Industrial Product Price (MoM) above expectations (1.3%) in April: Actual (2%)

Canada Retail Sales ex Autos (MoM) above forecasts (0.9%) in March: Actual (1.4%)

Canada Raw Material Price Index came in at 2.6% below forecasts (2.7%) in April

Nordea's strategists Sara Midtgaard and Henrik Unell see scope for Euro (EUR) appreciation against the US Dollar (USD) as policy divergence grows.

The Euro (EUR) extends losses against the US Dollar (USD) on Friday, right below 1.1600 at the time of writing and nearing six-week lows, at 1.1584.

BNY’s Bob Savage says global equities are posting another weekly gain, led by technology, even as Oil and the Dollar rise and risk-off momentum in iFlow accelerates. Equity outflows have intensified overall, but flows into core government bonds remain resilient.

Gold (XAU/USD) consolidates on Friday, remaining confined within this week’s trading range as investors cautiously monitor ongoing diplomatic efforts between the United States and Iran to reach a deal to end the war in the Middle East.

Mexico Gross Domestic Product (YoY) registered at 0.2% above expectations (0.1%) in 1Q

Mexico Gross Domestic Product (QoQ) above expectations (-0.8%) in 1Q: Actual (-0.6%)

Mexico 1st half-month Core Inflation below forecasts (0.17%) in May: Actual (0.13%)

Mexico 1st half-month Inflation below expectations (-0.15%) in May: Actual (-0.16%)

Brown Brothers Harriman’s (BBH) Elias Haddad observes GBP/USD trading directionless near its 200-day moving average around 1.3423, with downside risks from potential United Kingdom (UK) swaps curve repricing and a possible leftward shift under a Labour government.

Commerzbank’s Thu Lan Nguyen notes that Gold briefly slipped below USD 4,500 per ounce as markets priced a prolonged Iran conflict and sharply higher US rate expectations.

The US Dollar (USD) remains moderately bid against the Japanese Yen (JPY) on Friday, crawling up above 159.00, and nearing 160.00, allegedly the limit of tolerable JPY weakness for Tokyo.

The British Pound (GBP) is up against its major currency peers, but is marginally down to near 1.3420 against the US Dollar (USD) during the European trading session on Friday. The British currency rises even as concerns over United Kingdom (UK) public finances have escalated.

OCBC’s Christopher Wong says USD/JPY’s recent rally is moderating as UST yields and the Dollar ease, but the pair remains elevated. The bank warns Ministry of Finance intervention risk could rise if USD/JPY breaks into the 160–161 area in thin holiday liquidity.

India FX Reserves, USD dipped from previous $696.99B to $688.89B in May 11

MUFG’s Lloyd Chan notes that elevated US yields and increased expectations of further Federal Reserve (Fed) tightening are supporting the US Dollar (USD) in the near term. The 2-year and 10-year yields remain high, and markets are pricing a higher probability of Fed action by year-end.

Crude Oil prices are hovering near 10-day lows, with upside attempts limited below the $98.00 line on Friday, on track to a nearly 4% weekly decline.

The Indian Rupee (INR) extends its recovery against the US Dollar (USD) on Friday. The USD/INR pair slides to near 95.90 as weakness in oil prices due to intensified optimism that the United States (US) and Iran will reach a deal soon has strengthened the Indian Rupee.

Bank of Japan (BoJ) Governor Kazuo Ueda said after a meeting with Japan’s Prime Minister (PM) Sanae Takaichi that both the central bank and government will continue to coordinate closely. Ueda added, “The meeting was beneficial to all parties.”

The Australian Dollar (AUD) is down 0.25% to near 0.7130 against the US Dollar (USD) during the European trading session on Friday.

Gold (XAU/USD) trades lower for the second consecutive day on Friday, but remains contained within previous ranges, with downside attempts limited above the $4,500 line for now.